What Is a Secure Data Room?

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A secure dataroom is a digital room with enhanced security. It’s used to keep and transmit confidential documents during sensitive transactions like M&As and due diligence. Many companies across industries rely on secure data rooms to ensure compliance with regulations and safeguard sensitive information from cyber attacks and other threats.

A secure data room typically has two-factor authentication. It also allows you to see the IP address, device and location from which users log into. You can also set granular permissions on the types of documents and activities the user is permitted to do. Some of the more sophisticated secure data room options permit you to restrict access to specific files using a unique link or password. This will restrict users from sharing documents that they have visited.

Secure transmission and encryption at rest is a key security feature. This ensures that even in the event that the server hosting data is compromised, intercepted data won’t be readable by non-authorized parties. Virtual datarooms can also utilize a zero-trust private content network to provide additional protection to applications and workloads. This makes sure that even the most sensitive of information is secure regardless of whether it’s stored on emails, devices or managed file transfer APIs or web forms.

Many secure data room providers permit you to add digital watermarks. They are visible when browsing PDF documents online, but can be removed with tools such as Adobe Acrobat. The addition of watermarks is useful in helping identify if a downloaded document is an original document that has been altered.