A secure data room is a cloud service specifically designed for the storage and sharing of confidential business data. It is used for M&A due-diligence, IPOs and litigation, fundraising, and other sensitive document processing. It offers a greater level of security than file sharing services online. The server space is encrypted to block hackers from accessing the content. Many also offer options like granular access to permissions and search functionality.
However, these tools don’t prevent authorized users from making copies of the files that they have legal access and sharing those with others – something that can be quite easy to do. Additionally, these services do not offer a linkage that would identify the source of unauthorized distribution.
This is the reason why companies looking for an advanced method to store and share files should consider a virtual storage room (VDR). VDRs offer a higher degree of protection than email, Google Drive, and Dropbox. They accomplish this by using advanced encryption, tracking tools as well as other security measures that make it impossible for users to copy and distribute protected documents. This includes dynamic watermarking that adds unique identifiers to each document that include the email address of the recipient and IP address, to deter sharing without authorization. In addition, a reliable data storage facility such as Digify can automatically determine which documents are viewed by whom, and how often and for how long.
https://getdataroom.com/reasons-for-of-usage-data-room-software/
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