Secure data rooms are able to encrypt all documents as they transfer between servers and stored, in contrast to file sharing and storage services like Dropbox which only protect files during the uploading and downloading process. This is vital to stop hackers from gaining access to the data in the event of its https://www.wedataroom.com/virtual-data-room-pricing-how-to-choose-a-plan-based-on-your-budget/ loss.

However it is essential to remember that most data rooms are only as secure as the security measures implemented by the server hosting them – so while encryption of data while it is in storage is vital, it’s still not enough to guarantee complete security. It is also worth determining whether the data room’s security measures encrypt temporary files that are created when documents are downloaded to the browser. If not, it could mean that thousands of documents are unprotected on a server which could be easily compromised.

Another important feature is the ability to add personal notes to documents that can only be viewed by the person who created them – it reduces the possibility of third parties gaining access to confidential information and facilitates collaboration during due diligence. Additionally, the most secure data rooms include dynamic watermarks which update in real-time, which discourages unintentional sharing of files and can help to identify the source of a file if there is a leak.

Check that the virtual data room you’re considering is in compliance with security standards set by industry by determining if it holds ISO 27001 or similar certification. Look for a data room that has strong encryption and detailed reporting on access and activity.