Security of data room software includes multiple layers of protection that secure storage, sharing, and collaboration with sensitive information. It comes with granular control that limits the access of users to download or edit files, as well as view them. Audit trails are also used to keep track of user activity. It also provides a variety of document encryption options to secure data in storage and during transit. Other features, such as watermarks, stop unauthorized sharing by displaying an indestructible identification number on each file. It also offers two-factor authentication, which requires an additional verification method for users to log in and decreases the risk of malware. It should also allow secure sheet viewing to protect formulas and PII in Excel files.
Many industries are governed by state, federal 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 could result in legal penalties, fines lawsuits, reputational damage and fines. They can also cause disruptions to operations and even loss of revenue. 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 also protects against leaks of information, as well other security threats by reducing the possibility of unauthorized users getting access to sensitive information via hacking, malware or phishing attacks. It also offers end-toend encryption, which encrypts files on the device of the sender and then decrypts them on the device of the recipient. This stops unauthorized access to data even if the file is accessed by someone else during transmission. It also has activity tracking, which monitors and records changes made to files by users and alerts administrators of suspicious behaviour.
