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What Is a Secure Data Room?

A secure data room is a virtual space with enhanced security features that are used to store and sharing sensitive documents in sensitive transactions like M&A or due diligence. Many companies across industries rely on secure data rooms to ensure compliance with the law and protect sensitive information from cyber-attacks and other threats.

A secure data room usually includes two-factor authentication. It also allows you to view the IP address of the device, location and IP address from which users are logging in. You can also set granular permissions for the types of documents and activities a user is allowed to access. Some of the more advanced secure data room options allow you to limit access to specific files using the unique link or password. This will restrict users from sharing documents that they have been able to access.

Encryption during transport and at rest is another important security feature. This will ensure that if the server hosting your data is compromised, the data that is intercepted will be inaccessible to unauthorized parties. Some virtual data rooms also employ a zero-trust private content network to make this available to secure data room workloads and applications, so even the most sensitive data is protected on devices, in emails and managed file transfer application programming interfaces (APIs), and web forms.

A lot of secure data room providers allow users to add digital watermarks. These are visible when you view PDF documents online, but is easily removed using tools such as Adobe Acrobat. Watermarks are helpful to determine if the file you have downloaded is an original copy.