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A secure data room is a virtual space that has enhanced security systems that are used to store and sharing confidential documents during sensitive transactions such as M&A or due diligence. Secure data rooms are utilized by many organizations in different industries to ensure compliance and protect sensitive information against cyber attacks and other threats.
Typically, a secure space will feature two-factor authentication. This includes the ability to track which IP address or device users are logging into from, and the ability to set granular permissions on the kind of files and activities users are allowed to do. Some of the more advanced secure data room software solutions permit you to restrict access to certain files using the unique link or password. This may stop users from sharing documents that they have visited.
Encryption during transport and at rest is an additional security feature. This ensures that even the server hosting the data is compromised, accessed data will not be accessible to unauthorised third parties. Virtual data rooms can also use a zero trust private content network to expand this to workloads and applications, so even the most sensitive information is secured on devices, in emails, managed file transfer, application programming interfaces (APIs), and web forms.
Many data room providers that are secure allow you to include digital watermarks. They are visible when you view PDF documents online, but can be removed easily using tools such as Adobe Acrobat. Watermarks are useful to help determine if the document that you have downloaded is an exact copy.