A virtual dataroom secure is a platform online where large volumes of confidential documents can be safely shared beyond the walls of a company. It is typically used for blog M&A deals, due diligence, litigation, bankruptcies and audits, fundraising, any time multiple parties require a review of sensitive data.

The best virtual data rooms are outfitted with a range of security options that ensure that data stays where it’s supposed to be – in the data room. These features include physical security, granular permission settings and the ability to track the activity of documents.

Data Center Security: The most secure VDRs use industry-grade data centers with sufficient physical security measures including offsite data backups as well as data redundancy, fire protection and biometric access control. They also utilize a robust business continuity plan, and go through regular penetration tests.

Document Access Security: The most secure virtual data rooms have the ability to grant documents granular access rights that permit administrators to restrict access to specific folders and documents. They can set printing, viewing and downloading options. They also permit users to apply dynamic watermarks to pages of printed documents and pages that are viewed and set time limits for access.

Privacy Security The VDR that is HIPAA-compliant and meets ISO 27001 compliance or exceeds it, will provide security for privacy. It provides end-to-end encryption (E2EE) which blocks the unauthorized access of information by service providers or hackers.

A top-rated VDR is certified by FINRA (Financial Industry Regulatory Authority) and SOC 2 (Service Organization Controls) which means it adheres to the most stringent procedures for handling to protect PII. This can help avoid costly penalties and legal costs that can be incurred due to data breaches, as well as the lost revenue that could result from compromised trade secrets or plans.