Security of data room software includes multiple layers of protection that secure storage, sharing, and collaboration on sensitive information. It provides access controls for users to limit who is able to view and edit files, as well as audit trails that document the activities of users. It also provides a variety of encryption options for documents to safeguard data both in the its rest and during transport. Watermarks and other options like them stop unauthorized sharing of files through the display of an identification number that is permanent. It also supports two-factor authentication which requires users to use a second form of verification in order to sign in. This decreases the chance of malware. It also supports secure sheet viewing in order to protect formulas and PII in Excel files.
Many industries are subject to federal, state, and international laws and regulations, including the California Consumer Privacy Act (CCPA), GDPR, HIPAA, FISMA, SOC 1 and 2, SOX, and ISO 27001. Data breaches can lead to fines and penalties from the law as well as lawsuits, reputational damage as well as operational disruptions, which can lead to loss of business. Data room security can help ensure compliance with these regulations and laws by ensuring that only authorized individuals are able to access shared sensitive information. It also helps to prevent leaks of information, as well as other security threats, by reducing the likelihood of unauthorised users having access to sensitive data through hacking, malware or phishing attacks. It includes end-to-end encryption that encrypts documents on the sender’s device and only decrypts them on the device of the recipient blocking access by unauthorized users to data even if the document is intercepted during transmission. It also features activity monitoring, which monitors the activity of users and logs any changes made to files and alerts administrators to suspicious activity.