What Is a Secure Data Room?

A secure data room is a cloud solution designed specifically for the storing and sharing of confidential business data. It is often used in M&A due diligence, IPOs, litigation, fundraising, and other sensitive document-based processes. It offers a higher degree of security than file sharing online. The server space is secured to prevent hackers from gaining access to the content. Some also provide options like granular access https://getdataroom.com/5-tips-on-choosing-a-data-room-provider/ to permissions and search functionality.

However, these features don’t prevent authorized users from taking copies of the files that they have legal access and sharing those with others – something that could be quite easy to do. Also, these tools don’t provide a linkage that would reveal the source of illegal distribution.

It’s the reason businesses looking for an advanced method to store and share files should think about a virtual room (VDR). In contrast to the basic protection offered by email, Google Drive and Dropbox, VDRs protect confidential information and intellectual property using advanced encryption and tracking features that make it difficult for users to copy or distribute protected documents. This is a dynamic watermarking system that adds unique identifiers to each file, such as the recipient’s email address and IP address to discourage sharing that is not authorized. A reputable data room, such as Digify can also keep track of who is viewing documents, how often and for how long.