Data room software security includes multiple layers of protection for sensitive information during storage, sharing and collaboration. It provides access controls for users to limit who is able to view edit, download, and view files, and audit trails that record the activities of users. It also comes with a variety of encryption options for documents that protect data both at rest and during transit. Watermarks, along with other features like them prevent unauthorized sharing of files by providing an identifiable permanent symbol. It also comes with two-factor authentication, which requires another method of verification for users to log in and decreases the risk of malware. It should also support secure sheet viewing to guard formulas and PII in Excel files.
Many industries are under the control of federal, state and international laws and regulations. This includes the California Consumer Privacy act (CCPA), GDPR and HIPAA. Other regulations include SOC 1 and 2 and ISO 27001. Data breaches advantages and disadvantages of buying an existing business often result in legal penalties and fines as well as lawsuits, reputational damage as well as operational disruptions, which can lead to loss of business. Data room security assists in compliance with these regulations and laws by making sure that only authorized persons are able to access shared sensitive information. It can also prevent data leaks, as other security threats by reducing the possibility of unauthorized users being able to gain access to sensitive information via hacking, malware and phishing attacks. It also includes end-toend encryption which encrypts the files on the device that are being sent and decrypts them only on the device of the recipient. This prevents unauthorised access to data, even when a file is intercepted when it is being transmitted. It also incorporates activity tracking, which monitors and logs any changes made to files by users and alerts administrators of suspicious behaviour.
