A virtual data room, or VDR, is a secure online repository for important and sensitive company documents. It is a modern-day equivalent of a physical room, in which hard copies of documents from the company are reviewed in the course of a purchase or sales negotiation. However, it also comes with numerous security features that block unwanted third parties from accessing.
Many VDR providers boast about their secure servers by declaring their systems to be the most secure of virtual data rooms. This is misleading and unfit for purpose. To be truly secure the data room must to ensure that only authorized users are able to access the documents. Additionally, it must ensure that no unauthorised user has the ability to share login credentials or links to your documents with non-authorized users.
The secret ingredient to an encrypted data room is that it extends beyond the security of servers and covers the whole process of uploading and viewing files in your virtual rooms. This includes the creation of a hierarchical folder structure and standardized names for documents to make it easier to keep track of your documents as well as individual permission settings to limit who can access what. It should also include advanced auditing and reporting in order to find any potential issues such as by displaying who has viewed what documents.
It is important to note that the majority of data breaches are caused by human error. This can be avoided by utilizing advanced security features. This should include industry-leading encryption technology that can scramble your documents at rest and a robust multi-factor authentication system to stop unauthorized user access and monitor logins of users to verify that the person login is who they claim to be.