Data room software security consists of multiple layers to safeguard sensitive information during storage, sharing and collaboration. It has controls that limit who can download or edit files and who can view them. Audit trails are also included to track user activities. It also includes a variety of document encryption options to protect data both at rest and during transit. Other features, like watermarks, prevent unauthorized sharing by displaying an irremovable identification code on every document. It also comes with two-factor authentication which requires users to utilize a second method of verification in order to sign in. This reduces the potential for malware. It also should support secure sheet viewing in order to protect formulas and PII in Excel files.
Many industries are subject to state, federal, and international laws and regulations, like the California Consumer Privacy Act (CCPA), GDPR, HIPAA, FISMA, SOC 1 and 2, SOX, and ISO 27001. Data breaches can lead to legal penalties and fines and lawsuits, reputational damage and operational disruptions as well as loss of business. Data room security can help meet these laws and regulations, since it ensures only authorized users have access to sensitive information. It can also help prevent leaks of data and other security threats by reducing the chance that unauthorized users can gain access to sensitive information by hacking malware, phishing, and man-in the-middle attacks. It also offers end-toend encryption, which encrypts files on the sender’s device and decrypts them only on the device of the recipient. This prevents unauthorised access to data even if a file is intercepted while being transferred. It also features activity monitoring, which monitors the user’s activity and records any changes made to files and alerts administrators to suspicious behavior.