A virtual data room is a space that businesses can keep and share documents that are protected with trusted third parties which reduces check that the risk that sensitive business information could be divulged to unauthorised individuals. Due diligence was traditionally conducted in physical rooms. Today, it is performed online in virtual data rooms.
The best VDRs are security-focused and have features that help reduce the risk of data breaches and unauthorized sharing. These include granular control over document access, multi-factor authentication, session timeouts, restrictions on location, secure spreadsheet viewers, watermarking, screenshot blocking, and encryption. All of these build a strong digital fortress around the information stored and shared in the VDR that helps businesses comply with regulations and build trust with their customers.
However, when choosing a secure data storage space, it is important to be sure that the choice is really suited for the task and doesn’t simply enable authorized users to log in and share their files on other platforms. Many’secure’ systems claim that they can block this. However they simply decrypt files on the server, and then forward them to the browser.
To do this they rely on fact that your browser is equipped with a certificate and that your browser is configured to accept only certificates from a trusted source. This does not mean that your VDR cannot be hacked, however, it ensures that hackers are only able to gain access to your encrypted data and not your unencrypted, temporary files.