A secure data room (also called a virtual data room) is a solution using software to manage the sharing of sensitive https://boardroomnow.net/digify-establishes-new-standards-in-due-diligence-vdr/ information with authorized parties. It allows businesses to share documents in a controlled, organized and secure way with multiple parties. This includes document tracking, version control, and other advanced features. In the past, companies had used spreadsheets or email to share due diligence files. However these methods aren’t safe and could cause many liabilities when they are used by the wrong persons.
“Secure Data Rooms” like to promote how secure their server system is by claiming that they use encryption on their hosting server. This is great but it does not stop hackers from hacking into the server. The majority of browsers have built-in tools to capture high-quality images of document pages and there is nothing that secure data rooms can do to prevent this from occurring.
Certain “secure data rooms” claim that their system blocks sharing by requiring users to sign-in using 2FA. However, this is just an extra layer of security which does not address the issue that authorised users are still able to copy and paste links to other users or forward their own email with links. This is why a DRM based secure file sharing system is a better choice for companies – because it locks the files to devices and locations so they cannot be shared or redirected and automatically removes access after certain period of time if needed.