What Is a Secure Data Room?

A secure data room is a cloud solution specifically designed to store and sharing of confidential business data. It is often used in M&A due diligence, IPOs, litigation, fundraising and other sensitive document-based processes. It offers a greater level of security than file sharing services that are available online. The server space is encrypted to block hackers from accessing content. Some also provide options like granular access to permissions and search functionality.

These options do not hinder authorized users from making copies of the files they have access to, and sharing them with others. This can be done quite easily. These services do not contain a link that could identify the source of the unauthorized distribution.

This is why it’s essential for businesses seeking a more sophisticated way to store and share files to consider the possibility of a virtual data room (VDR). VDRs offer a higher level of protection than email, Google Drive, and Dropbox. They do this by using advanced encryption, tracking features and other security measures that make it difficult for users to copy and distribute protected documents. This includes dynamic watermarking, which adds unique identifiers for each document that include the email address of the recipient as well as IP address to prevent unauthorized sharing. Additionally, a secure data storage facility such as Digify can track automatically which documents are viewed by whom, and how often and for how long.

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