What Is a Secure Data Room?

Secure dataroom is a cloud-based solution that’s designed to store and share confidential business information. It is commonly used in M&A due diligence, IPOs, litigation, fundraising, and other sensitive document-based processes. It provides a higher degree of security than online file sharing services. The server space used is encrypted, which blocks hackers from gaining access to the content and a lot of them also provide features like granular permissions such as search functionality, customizable NDAs with a Q&A function with personal watermarking and multi-factor authentication.

However, these tools do not prevent authorized users from making copies of the files that they have legal access and sharing them with others. This can be quite easy to do. Furthermore, these services don’t provide the linkage needed to reveal the source of illegal distribution.

This is why it’s important for companies looking for a more sophisticated method of storing and share files to consider the idea of a virtual room (VDR). Instead of the simple protection provided by email, Google Drive and Dropbox, VDRs protect confidential information as well as intellectual property by utilizing advanced encryption and tracking features that make it difficult for users to copy or distribute protected documents. This includes dynamic watermarking that applies unique identifiers for each document including the recipient’s email address and IP address to stop sharing without authorization. A secure data room, like Digify can also keep track of who is viewing documents as well as how often they are viewed and for how long.

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