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What is a Secure Data Room?

A secure data room (also known as a virtual data room) is a software solution to manage sharing of sensitive information with authorized individuals. It provides an organized safe and secure way for companies to share documents with multiple parties with document tracking as well as version control and other advanced features. In the past, businesses had used spreadsheets or email to share due diligence documents. However these methods aren’t secure and can lead to several liabilities when they are used by the wrong individuals.

Some’secure data rooms’ highlight how secure their servers are by affirming that they have encryption while on the hosting servers, which is fantastic however, it does nothing to stop unauthorised users from gaining access and even if did not, the server hosts thousands of temporary files with the content of your documents that could be easily downloaded by hackers who use screen grabber software. The majority of browsers include tools that allow them to grab high-quality images from documents. Secure data rooms are powerless to stop this.

Some’secure data rooms’ also claim their system stops sharing by requiring users to login with 2FA but this is just a fancy extra layer of security that doesn’t take into account that authorized users can still copy and paste link details to others, or forward their own emails by using hyperlinks. This is why using a DRM based secure file sharing solution is a superior choice for businesses – as it secures the files to locations and devices so that they cannot be shared or transferred, and it automatically revokes access after a specified time https://boardroomnow.net/digify-establishes-new-standards-in-due-diligence-vdr/ frame if it is needed.


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