Virtual data rooms are places where businesses can store and distribute privileged documents to a selected group of third party. This reduces the chance of confidential business information being disclosed to unauthorized individuals. Due diligence was traditionally conducted in physical rooms. Today, it is done online in virtual data rooms.
The best VDRs are security-focused and have features to reduce the costs of data breaches and unauthorized sharing. They offer granular access controls, multi-factor authentication and session timeouts. They also provide location restrictions and secure spreadsheet viewers, as well as blocking screenshots and watermarking. All of these combine to build a strong digital fortress around the data stored and shared in a VDR that helps businesses comply with regulations and build trust with their customers.
When selecting a secure data space, it is important to make sure that the system is actually fit for purpose and doesn’t just permit authorized users to login and share files on other platforms. A lot of “secure” solutions claim to stop this, but the reality is that they do not – they simply make your files encrypted on the server prior to delivering them to your browser.
They depend on your browser having an SSL certificate and being set to only accept certificates from trusted sources. This doesn’t mean that your VDR cannot be hacked, however it does ensure that hackers are only able to gain access to your encrypted files, not your non-encrypted temporary files.
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