What Is a Secure Data Room?

A secure data room is a cloud-based solution designed specifically for the storing and sharing of confidential business information. It is often used in M&A due diligence, IPOs, litigation, fundraising and other sensitive document-based processes. It provides a higher level of security than file sharing services that are available online. The server space is encrypted to prevent hackers from accessing content. Some also provide features like granular permissions as well as search capabilities.

These features do not prevent authorized users from making copies of the files they have access to, and sharing them with others. This can be done easily. These services do not provide a hyperlink that could identify the source of the unauthorized distribution.

This is why it's essential businesses looking for a more advanced method to store and share files to consider a virtual data room (VDR). VDRs offer a higher degree of security than email, Google Drive, and Dropbox. They accomplish this through advanced encryption, tracking features, and other security measures that make it difficult for users to copy and distribute protected files. Dynamic watermarking adds unique identifiers such as the email address of the recipient as well as IP address to each document to deter unauthorised sharing. In addition, a reliable data storage facility such as Digify will automatically monitor the documents that are viewed by whom, how often and for how long.

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