The security of a company and its data is a top priority for any owner, which is so hard to achieve. Modern technology is our blessing and curse because it can both protect and harm our online activities. Data leakage threatens a company with the loss of reputation, customers, and money, which is why it is so important to pay due attention to methods to protect your data. Virtual data rooms are programs that have become a revolutionary solution for storing and sharing confidential documents online, as they have been able to provide a level of security.
What is a virtual data room?
It used to be that all transactions and financial transactions were done through a designated place called a physical vault. Two parties to a transaction would come there to conduct due diligence and enter into contracts. That way, it took too long for the transaction to go through. Firstly, potential clients of your company had to temporarily reside in the same city as your branch and physical room, secondly, it was not an easy, time-consuming, and hard task to find the right documents in enormous stacks, and thirdly, this method of verification compromised the integrity and security of your data which could easily be copied, damaged, stolen, etc. On top of that, maintaining a physical data room was very expensive.
With the advent of modern technology, a worthy replacement for this phenomenon appeared, namely virtual data room. It has provided a high level of document security, remote access to all information, and automation features to speed up the transaction process. These online spaces have proven reliable for many companies around the world. Now they are trusted with confidential documents of varying levels, including intellectual property, trade secrets, and financial records. They save you costs and time by offering a flexible SaaS-based space that allows authorized users to access the information they need from anywhere, anytime.
What makes a virtual data room secure?
Below we will provide a list of the main features of virtual data room in terms of security that set this solution apart from any other data storage and sharing software:
- Security Certificates – This is an indication that your VDR provider has undergone an international-level security check, and is willing to provide its services based on a license. You can trust these VDRs with any of your data
- Built-in anti-virus – all your documents are scanned for viruses when you download them to make sure you’re safe inside your space
- Backup – backups take place continuously in real-time and thus prevent your data from being lost or corrupted
- Data encryption – Document encryption protects your data from leakage and occurs both at rest and while it is being shared. It is impossible to decrypt them without a special key, so your data will be of no value to intruders in this state
- Double Authentication – in addition to the usual log in and password users must enter an additional code, which guarantees protection of the login against unauthorized intrusion
- Access permissions – the administrator can set the visibility of the documents for the other users, e.g. he can only make the document available to those users who need this information to proceed to the next stage of the transaction
- Interaction permissions – administrators can also prohibit document interaction functions, such as copying, printing, forwarding, uploading, or editing the document, thus avoiding the risk of leakage
- Watermarks -Watermarks come in many types, but their primary purpose is to indicate your company’s rights to a particular document and prevent data leakage