Secure data rooms are able to encrypt all documents as they move between servers and stored, unlike storage and file sharing services like Dropbox which only encrypt documents during the uploading and downloading process. This is important to prevent hackers from getting access to the data in the event it gets lost.
It is crucial to remember that the security of many data rooms is only as secure as the server hosting them. The encryption at rest is essential, but does not provide 100% security. It is also worth asking if the virtual data room’s security measures encrypt temporary files created when documents are downloaded to the browser. If not, it could mean that thousands of documents are left unprotected on a server which could be easily hackable.
A key feature is the ability to add notes to documents that are only accessible only by the person who wrote them. This decreases the risk that third parties will be able to view confidential information, and also improves collaboration during due diligence. Likewise, the best secure data rooms feature dynamic watermarks that update in real-time which deter unsolicited file sharing, and also helps to trace the source of files if a leak does occur.
In the end, ensure that the data room is compliant with industry-standard security standards by ensuring that it is equipped with ISO 27001 certification or other similar assurances. Also ensure that you choose an encryption-secure data room that offers robust encryption methods and offers detailed reports on the user’s access and activities.