A virtual data room is a place that businesses can keep and share confidential documents with trusted third parties, which minimizes the risk that sensitive business information will be leaked to unauthorized individuals. Traditionally, due diligence was conducted in physical rooms. However, nowadays, it is conducted online in what is known as virtual data rooms (VDRs).
The best VDRs provide security-first features that reduce the cost of data breaches and unauthorised sharing. They offer granular access controls multi-factor authentication, session timeouts. They also offer the ability to restrict location, secure spreadsheet viewers, as well blocking screenshots and watermarking. All of these features work together to create a secure digital fortress that safeguards the information stored in the VDR and is shared with customers.
When selecting a secure storage facility, it’s important to ensure that the solution is fit for the job. It shouldn’t be a matter of allowing authorized users to log in and upload your files to external platforms. Some “secure” solutions claim that they can block this. However they just decrypt the files on the server and transfer them to the browser.
To do this they rely on the fact that your browser has an SSL certificate, and that your browser is configured to accept only certificates issued by a trusted source. This doesn’t mean that your VDR cannot be hacked. However it will ensure that hackers are only able to access your encrypted files, and not your temporary files.