Secure Data Room Review

Virtual Data Rooms, or VDRs are a specific type of online file storage and collaboration platform specifically designed for secure sharing of confidential business documents. They are often utilized in M&A, IPOs, due diligence, real estate asset lifecycle management as well as capital raising projects that require the secure storing, managing and sharing of critical business files with third party external partners. The top VDR providers come with a variety of features that help reduce the chance of sensitive information being leaked to unwelcome third parties.

A secure VDR must be inaccessible to anyone who is not authorized, and most offer features such as granular permissions, click trails, dynamic watermarking, and more to prevent the accidental disclosure of private information. However, they are susceptible to human error and it is vital to ensure that the correct instruction is given for efficient and effective VDR use.

If your VDR is secured with security that is bank-grade but is still susceptible to 71% of all common attack vectors that involve human error, it doesn’t offer much security in the least. For instance, most users are using a screen-grabbing program on their computer, whether that be Snag-it, Paint or the Windows Snipping Tool – these applications can take pictures of documents stored in your VDR and disclose confidential information to anyone who is not authorized. It is essential to verify that your VDR solution comes with a strong security feature to stop users sharing their login credentials. The majority of VDRs do not restrict the number of times that a user can log in and out, so one individual could potentially access documents 30 times.

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