A virtual data room secure is an online environment where large quantities of confidential documents can be shared securely beyond the walls of a business. It is utilized for M&A, due diligence and litigation, bankruptcies or fundraising audits, or any other time multiple parties must review sensitive information.

The best virtual datarooms come with an array of security features that meet industry standards to ensure that data stays in the right place – within the data room. These features include physical security and granular settings for permissions, as well as tracking document activities.

Data Center Security: The best VDRs employ data centres of industry standard with adequate physical security, such as offsite backups of data, data redundancy and fire protection as well as biometric access control. They also implement a robust business continuity plan, and go through regular penetration tests.

Document Access Security: The most efficient virtual data rooms provide document access with granular permissions that allow administrators to restrict access to specific folders and documents. They can set printing only, viewing only and downloading options. They also allow users to add dynamic watermarks on viewed and printed document pages and set time-frames for user access.

Privacy Security Privacy Security: A VDR that is HIPAA-compliant and meets ISO 27001 compliance or exceeds it, will provide privacy protection. It uses end-to -end encryption (E2EE) to protect against the unauthorized interception of information by service providers and hackers and to stop the data from being altered or deleted.

Finally, a top-rated VDR is certified by FINRA (Financial Industry Regulatory Authority) and SOC 2 (Service Organization Controls), ensuring that it follows the most stringent methods of handling to protect PII. This helps prevent hefty fines and other legal expenses associated with data breaches, as well as the lost revenue that may result from compromise of trade secrets or strategic plans.

data room in ma