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Secure data rooms secure all documents while they move between servers and are stored, as opposed to storage and file sharing services like Dropbox which only protect documents during the uploading and downloading process. This is essential to stop hackers from gaining access to your information if it is lost.

It is important to keep in mind that the security of many data rooms is only as secure as the server hosting them. The encryption at rest is essential, but it is not enough to guarantee total security. In addition, it is important to check if the virtual data room’s system is able to encrypt temporary files that are created by downloading documents to the browser. If not, it could result in thousands of unprotected documents sitting in plain view on a server that could be easily hackable.

Another key feature is the capability to add personal notes to documents that are only viewable by the person who wrote them – this decreases the risk of third parties gaining access to confidential information, and also improves collaboration during due diligence. Also, the most secure data rooms feature dynamic watermarks that change in real-time to deter unwelcome file sharing and also help to track the source of files in case the leak does occur.

Check that the virtual data room you are considering is in compliance to industry standards for security by checking if it has ISO 27001 or similar certification. Choose a data room that is secure and has specific reports on activity and access.