Security of data room software includes multiple layers of security that ensure the security of sharing, storage, and collaboration with sensitive data. It has access controls that are granular to restrict who can access, edit, and download files, and audit trails that track user activity. It also provides a variety of document encryption options that secure data both at rest and during transit. Watermarks and other features like them prevent unauthorized sharing of files through the display of a permanent identifier. It also supports two-factor authentication, which requires users to make use of a second method of verification in order to login. This reduces the potential of malware. It also supports secure spreadsheet viewing to protect formulas, PII, and other private information in Excel files.
Many industries are subject to federal, state and international laws and regulations. These using a virtual data room for deal room management include the California Consumer Privacy act (CCPA), GDPR and HIPAA. Other regulations include SOC 1 and 2 and ISO 27001. Data breaches can trigger fines, legal penalties lawsuits, reputational damage and fines. They can also cause interruptions in operations and financial loss. Data room security facilitates compliance with these regulations and laws by making sure that only authorized persons have access to sensitive information shared. It can also prevent leaks of data, as well as other security threats, by reducing the likelihood of unauthorised users having access to sensitive data through hacking, malware or phishing attacks. It also comes with end-to-end encryption, which encrypts files on the device that are being sent and then decrypts them on the device of the recipient. This stops unauthorized data access, even if the file is accessed by someone else while being transmitted. It also features activity tracking, which monitors and logs changes made on files by users and alerts administrators of suspicious behavior.
