The year 2021 was not good in terms of data security as millions of user and financial records were compromised in the last year. For instance, the data of over 100 million users on Android was compromised just because of a slight misconfiguration of the cloud services.
Apart from that, more than 223 million records were compromised in Brazil, making it the biggest ever data breach in the history of Brazil. Other major examples include Bykea, Facebook, and LinkedIn data breaches. Yes, even the LinkedIn database, containing the personal and work-related information of millions of professionals from all parts of the world, was also compromised.
Why did it happen? Is it due to human negligence or weak cyber security measures? Well, obviously it can be both, and that is why businesses need to think about adopting the latest data security solution, such as online data room software, to minimize these data breaches.
What are virtual data rooms?
A virtual data room (also known as data room software) is a secure and centralized cloud-based data repository for storing and managing corporate documents. Any professional, business, firm, company, nonprofit, or government organization can use online data room software for safely storing, sharing, managing, or exchanging confidential or commonly-used documents.
Data rooms are often used as virtual workplaces where a large number of employees and project management teams of any company can collaborate online. They can upload, access, download, edit, or print documents depending on the permission settings. Data room users can also communicate through chat groups, audio and video calls, dedicated emails, Q&As, and end-to-end encrypted instant messaging.
In addition to that, data room software is globally used as online deal rooms where business entities are traded, and mega-scale transactions are carried out.
Did you know that private equity firms and corporations use virtual data rooms for mergers and acquisitions? M&As are highly complex and data-oriented business transactions involving a voluminous amount of data sharing.
But why do corporations turn to online data room software for such risky and complicated transactions? The simplest answer is data security. Virtual data rooms are hard to beat when it comes to secure data storage and sharing.
Read on to know how electronic data rooms provide unprecedented protection to your business data.
Virtual data room: Unparalleled business data security
Safe data storage
Virtual data rooms are safe data storage facilities where you can store your vital documents. But how does a virtual data room protect your data? Here is how:
- Two-step verification. Although two-step verification is a basic security feature, its importance is simply undeniable. Two-step verification is the first barrier for hackers or intruders. Users can only log in to the data room after completing a two-step verification process which usually requires them to enter the correct password and one-time generated secret code.
- Multi-factor authentication. Even if the hackers somehow get the passwords and are able to access data rooms, the multi-factor authentication feature will restrict further access. Multi-factor authentication requires the user to identify their most common or latest activities whenever they try to log in from a new device or operating system.
- Remote purging. If a data room user loses their device logged into the data room, they can inform the administration and request them to remove the device from VDR and delete all documents downloaded from the data room.
- Data backup. Data room vendors have servers installed in multiple locations, and the documents you upload in the virtual data rooms are automatically backed up. Multi-location servers minimize the chances of data loss due to natural disasters or other causes.
Secure data access and sharing
Apart from data room security, virtual data rooms employ additional security protocols for document protection. Here are some notable features:
- Document access control settings. Every good quality virtual data room vendor gives you the ability to control the documents access in your VDR. You, as the administrator, can decide the level of access that should be given to each data room user. You can determine which data room user can access a particular file, page, folder, or subfolder in the VDR.
- Non-disclosure agreements (NDAs). NDAs are legal documents that can be used to initiate lawsuits against defaulters. Virtual data room administration can ask data room users (temporary or permanent) to sign NDAs, which prevent unauthorized data sharing. Virtual data rooms have built-in, customizable NDA templates that can be signed online.
- Document access revocation. Generally, once a document is downloaded, the owner or creator has no control over it. However, virtual data rooms allow you to revoke document access anytime, even if the users have downloaded it. Once you revoke the access, the document will be immediately removed from the device and the browser history.
- “Fence View” mode. A rare but extremely useful feature, the “fence view” mode provides next-level protection to your documents. The fence view protects any document or a part of it from being photographed, scanned, or screenshot. This feature is super effective when you have to present your business data to external parties.
- “View-only” mode. When you switch a document to “view only” mode, no user can edit, alter, download, or print it.
Top 5 virtual data rooms for your case
Choosing the right virtual data room for your case is as important as opting for the VDR software in the first place. You, just like every other business owner or a professional, will have your own needs. However, the following data room services are helpful for all business types and sizes.
- iDeals virtual data rooms
- ShareFile data rooms
- Google Workspace
- Box virtual data room
With the evolution of technology and digitalization, things have become better and better for businesses. However, online channels have also made it easier for hackers to steal highly confidential data. Fortunately, virtual data rooms have already been serving thousands of businesses, corporations, and professionals globally. Have you considered using VDR for your business? If no, then it is the right time to change your mind and start using data rooms for your business.