Unlike file sharing and storage solutions such as Dropbox and Google Drive, which only secure your files when you upload them Secure data rooms encrypt every document as it moves between servers as well as in storage. This is essential to stop hackers from gaining access to the data if it is lost.
However it is essential to remember that the majority of data rooms are only as secure as the security measures put in place by the server hosting them. So whilst encryption of data in transit is vital, it’s still not enough to ensure complete security. In addition, it is worth asking if a data room’s system encrypts the temporary files that are created by downloading documents to the browser – if not that could mean thousands of unprotected files sitting in plain view on a server which could be easily attacked.
Another major feature is the capability to add personal notes to a document which are only accessible to the person who wrote them – it reduces the possibility of third parties having access to confidential information and enhances collaboration during due diligence. The best secure datarooms also feature dynamic watermarks that update in real time to prevent uninvited file sharing. They can be used to trace the source of a file if it is leaking.
Verify that the data room you’re considering is compliant with the industry standards for security by confirming if it is ISO 27001 or similar certification. Also look for an encryption-secure data room with strong encryption techniques and provides detailed reports on access and activity of users.
https://www.wedataroom.com/virtual-data-room-pricing-how-to-choose-a-plan-based-on-your-budget/