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A virtual data room is a space where companies can save and share confidential documents with trusted third-party partners which reduces the risk that sensitive business data could be divulged to unauthorised individuals. Due diligence was once carried out in physical rooms. Nowadays, it’s conducted online in virtual data rooms.
The top VDRs have security-first features to reduce the costs of data breaches and unauthorized sharing. These include granular controls over access to documents multi-factor authentication, sessions timeouts, location restrictions secure spreadsheet viewers, watermarking, screen-blocking, and encryption. All of these capabilities work to create a secure digital fortress that safeguards the information stored in the VDR and is shared with customers.
However, when selecting a secure data storage space, it is important to make sure that the system is actually fit for purpose and does not just allow authorized users to log in and share their files on external platforms. Some “secure” systems claim that they can halt this. However they simply decrypt files on the server, and then forward them to the browser.
They depend on your browser being equipped with a certificate and being configured to only accept certificates from reliable sources. However, this doesn’t mean that your VDR can’t be hacked. However it does guarantee that hackers are only able to access your encrypted files, and not your temporary ones.