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What is a Secure Data Room?

A secure dataroom (also called a virtual room) is a software that lets you to share sensitive information with other parties. It allows companies to share documents in an organized, controlled and secure way with multiple parties. This includes document tracking as well as version control and other advanced features. In the past, companies had used spreadsheets or email to share due diligence documents. However, these methods are not secure and can lead to many liabilities when they are https://boardroomnow.net/digify-establishes-new-standards-in-due-diligence-vdr/ used by the wrong individuals.

«Secure data rooms» like to advertise the level of security their server system is by claiming that they employ encryption on their hosting server. This is great, however it does not prevent hackers from gaining access to the server. A majority of browsers come with tools for capturing high-quality photos of webpages and there is little that secure data rooms can do to stop these from occurring.

Some «secure data rooms» claim that their systems stop sharing by requiring users sign in using 2FA, however this is simply an security feature that doesn’t take into account that authorized users are still able to copy and paste link details to other users — or forward their own emails by using links. This is why a DRM secure file sharing system is a superior choice for companies — because it locks the files onto devices and locations so they are not shared or redirected and automatically terminates access after a certain period of time if needed.