A secure dataroom (also called a virtual dataroom) is software that allows you to share sensitive information with other parties. It enables businesses to share documents in a controlled, organized and secure way with multiple parties. This includes document tracking, version control, and other advanced features. Traditionally companies have resorted to emailing and spreadsheets to share their due diligence files but these are not secure and could result in a range of liabilities if the wrong people get access.
“Secure data rooms” tend to boast about the security of their server is by claiming that they employ encryption on their hosting server. This is great, however it doesn’t stop hackers from gaining access to the server. The majority of browsers have built-in tools for grabbing high-quality images of document pages and there isn’t much secure data rooms can do to prevent these from occurring.
Certain “secure data rooms” claim that their software blocks sharing by requiring users to sign-in using 2FA. However this is just an extra layer of security that does not address the problem that authorized users are able to copy and paste links to others or forward their own emails with links. This is why a DRM based secure file sharing system is a much better option for businesses – as it secures the files to devices and locations, so that they are not shared or redirected and automatically revokes access after a certain amount of time, if necessary.
