Data room software security involves several layers that safeguard sensitive data during storage, sharing and collaboration. It has access controls that are granular that limit who can access edit, download, and view documents, as well as audit trails that document the user’s activities. It also provides a variety of encryption options for documents to secure data in storage and while in transit. Other features, such as watermarks, protect against unauthorized sharing by displaying an immovable identification code on every document. It also supports two-factor authentication which requires users to utilize a second method of verification to sign in. This reduces the potential for malware. It should also allow secure sheet viewing in order to protect formulas and PII in Excel files.
Many industries are governed by state, federal and international laws and regulations. They include the California Consumer Privacy act (CCPA), GDPR and HIPAA. Other regulations include SOC 1 and 2 and ISO 27001. Data breaches can trigger fines, legal penalties lawsuits, reputational damage and fines. They can also lead to disruption to operations and loss of business. Data room security can help adhere to these regulations and laws, since it ensures only authorized users have access to sensitive data. It can also assist in preventing leaks of data and other security threats by reducing the likelihood that unauthorised users will gain access to sensitive data through hacking, malware, phishing, and man-in-the middle attacks. It how does a digital data storage work comes with end-to-end encryption that encrypts documents on the device of the sender and only decrypts them on the device of the recipient to prevent unauthorized access to data even if the file is intercepted during transmission. It also includes activity tracking, which tracks and records changes made to files by users and alerts administrators of suspicious activity.
