Using virtual data room (VDR) enhances the operational agility of a business. A good data room facilitates working with international partners, simplifies and streamlines paperwork, and provides the necessary mobility for users. However, in the modern digital world, just convenience is not enough, you need to fool proof your data security.
Security is a major concern with data room service providers. First and foremost, a virtual data room has to be most secure as it processes, stores and shares tons of sensitive, confidential, or even classified information. Your investor data room should be able to protect your business sensitive data and deal details from data leaks and hacking attacks. Reliable virtual data room service providers offer multiple security features like data encryption, two-factor authentication, granular access permissions, computerized expiration, AI redaction, and remote permanently destroying facility. These security features make data storage and secure file sharing absolutely safe and quick. They also protect intellectual property by preventing unauthorized access to your online data by having anti-fraud and anti-hacking mechanisms to prevent third-party access.
Virtual Data Rooms guarantee this thanks to:
- Compliance with legal/industry requirements and standards attested by the audit certificate
- Standard and advanced security certification
- Infrastructure security and availability features
- Robust access security features
- Integral document security features
- A trusted and powerful customer support system
PHYSICAL SECURITY FEATURES
All good virtual data service providers comply with a set of physical security regulations. Taking care of on-site security is as important as deploying mechanisms to ensure online data security. These include:
1. Physical data protection: All data centers and power vaults are guarded and monitored 24/7/365 to ensure uninterrupted workflow.
2. Reliable infrastructure: Quality hardware that allows for 99.95% uptime in a failure-proof and safe environment.
3. Real-time data backup: An effective backup option creates a copy of any uploaded document through an encrypted VPN tunnel.
- Multi-layered data encryption: Using high-grade encryption while transferring and storing data enhances the intactness of data.
ACCESS CONTROL SECURITY FEATUES
Since most data rooms are used for transmitting highly sensitive business, financial, or classified information, access should be granted to a limited number of users to prevent any breaches and leaks. The most common access control features offered by reliable data room service providers include:
1. Selective permission settings: The data room administrator can give selective permission depending on the user’s role in the process.
2. Customize document permissions: Here the administrator defines the users who can access it and the changes they can make.
3. Single sign-in: Here users can access their accounts with the same sign-in credentials, even if they participate in various projects.
4. Two step verification: You need to have the password and a single-use code for logging in.
5. Time and IP address restriction. To prevent breaches, the investor data room can restrict certain IP addresses and limit access time.
6. Usage audit reporting: Gives you logging details. Internal audits and by-seconds session records lets you keep track of any changes made by the users.
DOCUMENT SECURITY FEATURES
Documents that end up in electronic data rooms aren’t meant to be seen by everyone. The following document settings are a must for every virtual data room:
1. Role defined document access rights: The user’s role defines the actions he can perform with certain documents (download as a PDF file or encrypted copy, have editing rights, or restricted view, etc.)
2. Dynamic watermarking: Designed to trace data leaks, this feature encrypts access session information, including the user’s IP address with access time and date.
3. Fence view: This barred screen view security feature protects from side viewers, unauthorized scanning, and photography.
4. Secure spreadsheet viewer: This enables a safe view of the data in Excel sheets and allows for customized access settings.
5. Remote wipe: In case of device theft this security feature allows the administrator to remove files from the device to protect confidentiality.
6. Remote shredding: This function lets you retain full control over the document even after the user has downloaded it.
But even with the above security features in place, there are several factors you have to consider consider before choosing a virtual data room service provider like International Certificates and standards for VDR software, Privacy Shield Frameworks, General Data Protection Regulations, Advanced and Industry-specific Certificates.
Finding a secure virtual data room service provider is the key to handling your company’s paperwork quickly, efficiently, and safely. By checking the data room service providers against the above criteria outlined will help select the best one suited for your business needs.
The DocullyVDR team is a provider of a new generation secure data sharing platform designed for businesses. The team has extensive experience in working with document sharing platforms and has been assisting the Virtual Data Room community since 2019 by providing users with free information.