Conducting digital transactions is becoming increasingly common for companies, but despite all the benefits this solution brings, companies are still struggling to preserve the integrity of their sensitive data online. Not all cloud storage is suitable for storing, sharing, and exchanging sensitive data. Moreover, its use can lead to irreparable consequences of data leakage. Virtual Data Room is one of the few solutions that can provide organizations with the desired security.
What is a virtual data room, and why should it be used?
Conducting business transactions online can be a profitable and efficient deal or a total bust and legal problem – the question is how you take advantage of the opportunities given to you. Today’s software market is overflowing with various online storage solutions, but not all of them are designed for business use. If you are negligent about the security of sensitive data or choose the wrong software solution to save money, you are exposing your company to a data breach. Virtual data rooms are robust platforms designed for various complex transactions such as due diligence, mergers and acquisitions, fundraising, IPO, real estate, investment, and legal and accounting processes. These licensed solutions offer multiple layers of protection similar to bank security. Data of varying confidentiality, including intellectual property and trade secrets, can be loaded inside VDRs, as the solution uses advanced security technologies that minimize any modern threats.
Security features of virtual data rooms
One of the main reasons why is considered the best business solution today is its security capabilities. For VDR vendors, security is a top priority, and therefore they provide several security features that are guaranteed to keep your data intact:
- Two-factor authentication
Logging in to VDRs is securely protected by double identity verification. In addition to a username and password, users must also enter an additional one-time code that will come to them via email or SMS. Unauthorized users would be unable to enter the system even if they managed to crack the password.
- Data encryption
Your data is protected from both external and internal threats. With data encryption, document content is encrypted for prying eyes, so even if an intruder manages to access the data, he won’t be able to read it.
- Resolution settings
VDR has also taken care to protect against internal threats so that platform administrators can adjust their documents’ confidentiality level. The DRM settings can prohibit copying, printing, editing, uploading, forwarding, screenshotting, and document visibility. They can also set partial visibility and prevent photos. Depending on the user’s role, you can also regulate their rights; for example, lawyers will only have access to legal data, etc.
Watermarks make sure that users treat the document according to copyright. Users who have been allowed freer actions with the paper are still under scrutiny, as watermarks record all actions performed with the composition and information about who served it.
- Automatic reports
Administrators can refer to the audit logs to review activity within the data room. There they will find detailed information about each user, making it easy to figure out suspicious behavior and remove the user from the space.
- Remote destruction
Even if data from the VDR has been downloaded to a third-party device, you can delete it from there at any time. Usually, this feature saves you if the machine where the important information was stored was lost or stolen. You can also set a time limit on access to documents and limit access by IP address.