Virtual data rooms, or VDRs are secure online storage facilities for critical and sensitive documents for companies. It’s a modern version of physical rooms where documents in hard copies could be reviewed during a purchasing or selling transaction, but with a whole host of specialised security features to block unwanted third parties from being able to access.
Many VDR providers boast about their secure servers by declaring their service to be the most secure of virtual data rooms. This is false and not appropriate for the purpose. To be truly secure the data room has to ensure that only authorized users have access to view documents. They must also ensure that no user who is not authorized is able to share login credentials or links to your documents with non-authorized users.
The secret ingredient to a secure data room is that it extends beyond server security, and encompasses the entire process of uploading and viewing files within your virtual data rooms. This involves creating a hierarchical structure of folders as well as standardizing document names to aid in keeping records of documents. Additionally, it requires specific permissions that limit who can see what. It should also include advanced auditing and reporting to spot any potential issues such as by displaying who has viewed what documents.
It is crucial to remember that the majority of security breaches are due to human error. These can be avoided by utilizing advanced security features. This should include the most recent encryption technology that can scramble documents in transit, as well as a robust multi-factor system to prevent unauthorized access.
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