The business world is changing after the pandemic. More and more corporations are considering M&A deals, and are looking for ways to share their sensitive documents virtually.
It comes as no surprise the popularity of secure data room services is on the rise. But what exactly makes a virtual data room secure? In this article we will explore some of the key security features of virtual data rooms and how they can help protect your sensitive data.
Security as a key feature of virtual data rooms
Cloud storage is a popular way to store data online, and most cloud services provide some sort of security to ensure data is safe. In the business world documents held in a virtual data room are especially sensitive. They can reveal important information about the operations of the company that need to remain secure. This is why the following security features are vital to the safety of information stored in a virtual data room.
Features that guarantee data room security
Special safety protocols are placed on the files stored in virtual data rooms. Those documents are encrypted in a variety of ways, and in case of a security breach, they would be impossible to read.
2. Two-factor authentication
With the rise of cybercrime, multiple-factor authentication is a must. The documents held in a virtual data room are far too sensitive to be protected by only one password.
3. IP restrictions
When someone accesses a virtual data room, the owner can see the user’s IP address and where that user is connected to the room. In case of any questions, it’s possible to backtrack who saw what files and at what time. This leads us to another security feature.
4. Document permission settings
Management can easily decide who has access to what kind of files. With extensive permission settings, you can assign permission to crucial team members and revoke access to non-essential contributors. If someone wants to download a file or print it out, you can utilize the next security feature.
A watermark is created whenever someone accesses sensitive data. This information includes when the file was downloaded and by whom. This is especially useful if there is a security breach, as the leak can be traced back to the person who accessed the files.
6. Fence view
To provide further security over access to sensitive documents, a fence view might be helpful. From the interface of the secure virtual data room, management can establish which parts of the documents are available to users and which parts aren’t. Segments of the data can also be obscured inside the data room.
7. Remote shred
Apart from granting access to the documents in the virtual data room, you can also set a specific time frame for how long a user can access information. After the time elapses, the chosen file is no longer available for download or even access. This manual management gives even more control over when data is accessible in a given time slot.
8. Activity logs
Every action in a secure virtual data room is registered and trailed. You can access reports about the changes made to documents, files uploaded and downloaded, and who deleted what kinds of information from the virtual data room. This kind of security control and overview would be impossible to implement in a physical data room.
9. NDA acceptance
Files that are stored in a virtual data room are important business documents. To ensure their safety, you can require that cooperators who have access to the files sign an NDA. Virtual data rooms enable the signing of such documents within the software, making this important task quick and easy.
* * *
In opposition to generic cloud storage services, virtual data rooms are designed with security in mind. Through a variety of safety-enhancing features, document managers can control what happens to sensitive business documents and gain a better view of interactions with sensitive data.