Virtual data rooms are locations where companies can store and distribute privileged documents to a select group of third parties. This reduces the risk of sensitive business data being leaked to unauthorised individuals. Traditionally, due diligence was conducted in physical rooms, but nowadays, it is conducted online in what’s known as virtual data rooms (VDRs).

The best VDRs offer security-first features to cut down on the cost of data breaches as well as unauthorized sharing. They offer granular control over access to documents and access, multi-factor authentication, session timeouts, restrictions on location, secure spreadsheet viewers, watermarking, screenshot blocking, and encryption. All of these combine to create a robust digital fortress around the information stored and shared in the VDR that helps businesses ensure compliance with the law and establish trust with their customers.

However, when selecting a secure data storage space, it is important to be sure that the choice is actually fit for purpose – that it does not simply enable authorized users to login and share their files on other platforms. Many’secure’ systems claim that they can block this. In reality they just https://joindataroom.com/what-is-a-secure-data-room-advantages-of-using/ decrypt the files on the server, and then send them to the browser.

To do this they rely on fact that your browser has certificates, and your browser is set to only accept certificates from an authentic source. However, this doesn’t mean that your VDR can’t be hacked. However it does guarantee that hackers can only access your encrypted files and not your temporary files.