Secure Virtual Data Room Standards

The number of secure data room services is growing fast, providing customers with a variety of options. But while the amount of new companies is increasing, the quality and features they offer don’t always meet the requirements of their clients. If you are dealing with an important project where document security is vital, the task will be complicated and the choice tough. 

Secure virtual data room is the most handy solution when you have to organize teamwork with large amounts of information:

Primary requirements for the service are confidential information protection and control of its use.

owned by different companies

stored in various formats with limited access

Data security management is a fundamental part of any due diligence data room. The web-based service you use for uploading the information has to be fully protected to make sure that no data can be transferred to the third party if they don’t have special permission. Likewise, the importance of the data room M&A safety is also a must, as an entrepreneur needs to upload sensitive financial documents and valuable materials about their companies without the risk of them being stolen, changed, or disclosed.

When you start your project, you need to check all the functions and settings of the platform to ensure it is a secure and reliable data room. The perfect solution has to include reasonable security features. This is the only way to make VDR convenient for clients and avoid leaks or unauthorized access to private information.

List of Security Features VDR Software

The prevailing majority of reputable and time-tested companies provide unique techniques and procedures that focus on the prevention of unsanctioned data access, for example:

Multi-Layered Data Encryption

Files are transferred with high-grade TLS protocol and encrypted at rest with 256-bit AES keys. Encryption keys and Key Vaults are securely stored separately from the encrypted data.

Two-Factor Authentications

An important requirement for all users of a virtual data room. Before accessing the documentation, user must confirm his identity through several authentication systems

Reliable Authentication System

To enter VDR, you need a password and a one-time code sent in a message. Two-step authentication will reduce the risk of unapproved access to restricted data of a dealroom software.

Access Management Functions

Secure data room services bring configuration and control of permissions. File owner determines the rights of users to view, print, and download a document or its part. Virtual data room providers operate to ensure reliable cybersecurity and exclude viruses in uploading files.

Document expiration

It is tool that triggers the destruction of the information if an external party tries to access it. The file may either get blocked or collapsed once the third party attempts to open it. This method lowers the risk of unauthorized document distribution, change and downloading;

Dynamic watermark

It is another tool present in a reliable and secure data room. Once documents are uploaded to the server, they get a dynamic watermark with the name of the user, project title, and date of the download;

Restriction for viewing

The users who work with sensitive materials use this tool frequently. The key concept behind this option is an inability to read some parts of the document for defined groups of users, as it is blurred or hidden.

Document Security Tools

Every file you upload is encrypted with reliable technology. Only an authorized user with the necessary rights can get access to a document or its part. Document security is guaranteed by automatic watermarking. A file owner can turn it on or off it if needed. A limited viewing function allows using a special grid that covers a forbidden part of a document showing only a piece of content. It is another useful feature of many platforms. Virtual data room solutions track users’ actions and generate detailed reports. You will know for sure how long the session was, which files visitors opened, and what changes they made.

Generally, the security of the documents is one of the critical factors that should influence your choice. Other things to keep in mind are convenience, simplicity of use, pricing, and specifications relevant to you. Protect your corporate materials by restricting the possibility of access by the third parties: viewing, editing, sharing, downloading, printing, and others. Every user may get individual access with restricted rights and features they can use with a secure virtual data room.

Secure Virtual Data Room Providers Review

Security Features

Two-Factor Authentications
Multi-Layered Data Encryption
Granular Permission Settings
Access Expiration
Access Limitation by IP Address
99.9% Uptime Guarantee
Data Backup
Virus Scanning
Multiple Datacenter Locations

Safety Compliance Certificates

HIPAA Compliant
SOC Certified Data Centres
ISO/IEC 27001:2013 Certified Data Centres
GDPR Compliant

Safety Compliance Certificates

Generally, the security of the documents is one of the critical factors that should influence your choice. Other things to keep in mind are convenience, simplicity of use, pricing, and specifications relevant to you. Protect your corporate materials by restricting the possibility of access by the third parties: viewing, editing, sharing, downloading, printing, and others. Every user may get individual access with restricted rights and features they can use with a secure virtual data room.

ISO/IEC 27001:2013 Certified Data Centres

The most stringent international certification for information security controls to ensure that appropriate controls prevent and manage risks. ISO 27001:2013 standards ensure that risks are assessed and managed appropriately; audits are regularly conducted; corporate compliance with regulatory and contractual requirements regarding data security. The certification underlines Custodian’s commitment to preserving the confidentiality, integrity, and availability.

SOC 1 or 2 Certified Data Centres

International Service Organization Controls (SOC) Certificate ensure that VDR data servers meet the standards for the secure handling of financial information. The certification guarantees the high quality of cloud service, company risk management, and data access.

GDPR Compliant

Certification guarantees compliance with the General Data Protection Regulation on maintaining the privacy and integrity of personal data, the exchange between the companies of USА and European Union. Provider’s Data Centers should be certified for EU-US Privacy Shield frameworks for the collection and use of personal data from European countries and the United States.

HIPAA Compliant

U.S. Health Insurance Portability and Accountability Act of 1996 (HIPAA) and adopt national standards for electronic health care transactions and national identifiers for providers, health plans, and employers. HIPAA protects the confidentiality and security of healthcare information.

When you choose a company providing data security services, consider the simplicity of use. Your workers and partners shouldn’t face any difficulties with a platform. Smooth user experience, 100% protection, and flexible settings are the key to success. So, there are three examples of companies that deliver the most secure services.

Going through the list of the best data room providers and the features they offer may not be enough to choose the one suitable for you. It is always better to test some first-hand. For example, world-known companies like iDeals, Box, and others offer a free trial period that will let you test the quality and transparency of their services.

Before you start your cooperation with any data room, make sure it is completely safe and meets all your needs, and consider the following:

Reviews

When choosing a suitable product for you, read some virtual data room reviews left by previous users. Websites like G2 and Capterra can give access to hundreds of them. Each data room claims it is the best and the most unique, but the actual reality may be completely different. The first step that will help you to choose a secure VDR is browsing the Internet in search of feedback, reviews, and ratings. Don’t forget to compare the features the providers offer to the list of things you may need. They can include the accessibility of the data room, simplicity of its use, customer support, safety, and others. Check whether secure data room services are suitable for typical cases of due diligence, M&A, asset sales.

Security

Strong encryption, multi-layer security tools, and individual access with double authentication are a must. This and other items are the options that should be included in a reliable data room so it can be considered safe for your valuable documents and data. One of the primary purposes of the VDR is not only to store your documents but also to preserve it from various threats and data breaches. Thus, you need to confirm that all the financial reports and corporate records will be stored safely within the secure virtual data room. The dangers of putting sensitive information on an unreliable platform should be eliminated. Since the modern VDR market offers a diversity of virtual data room solutions, security features may differ significantly. Safe data rooms should have some of the following features: SAS certification, 128 or 256b data encryption, dynamic watermarks, multilevel access, data backup, 2-factor authentication. Equally important, ask the providers for a detailed list of features of their software to be sure it has all the attributes you need.

Test the support service

An essential feature of a dependable digital data room is its ability to solve customer’s issues quickly. Even though you are not likely to have any problems if you choose a reliable platform, a professional helpline will always be a bonus.

Consider the interface

Personalized permission settings, as well as security credentials, are a must for a secure virtual data room. Before uploading any crucial data, you want to be sure it can’t be accessed, changed, or downloaded by any unwanted party without your permission.

Transparent cost policy

Extra security measures and solutions are often expensive. In this case, to get the best possible experience, you should be ready to pay more. The most crucial part here is the straightforward pricing policy. 

Virtual data rooms are the present and future of any successful business. VDR can completely transform and change the way people run their businesses. No need for financial meetings, sending documents using mail, or contacting the investor for details. Instead, a secure virtual data room may become a right solution, which will save both time and money.