Advanced virtual data room security features explained
Learn about the advanced security features of virtual data rooms and how secure data rooms safeguard a business.Virtual data rooms (VDRs) are essential for secure file-sharing and working together during complex business transactions like M&A and fundraising. Never is security more important than during a deal.
As a leading VDR provider, DocSend offers the highest standards of security built-in, ensuring the confidentiality, integrity, and availability of sensitive information. But what is behind these security features and how do they work to protect your data? Here we’ll explore how they function.
These advanced features we discuss here are available in DocSend, and you can sign up for a free trial to experience them firsthand. Starting a trial is a great way to get to grips with data room security features by seeing them in action.
A quick word on the benefits of data room security
VDR security goes beyond data protection. It drives businesses forward too. There are tangible benefits to any organization that uses a data room, such as:
It fosters trust and speeds up the transaction process
It helps businesses stay compliant with data protection requirements, avoiding legal or financial penalties
It eases collaboration without compromising security, for a smooth experience
So, while you’ll breathe easier knowing that prying eyes are always locked out with these security features—they actually help to improve business outcomes too.
It’s no wonder so many DocSend customers value the security and convenience the tool provides.
Types of security technologies in a virtual data room
There’s always an array of security protocols in play when working in a secure VDR. With a multi-pronged approach, security standards are easier to maintain—and this means it’s almost impossible for slip-ups to occur, guaranteeing security at all times.
DocSend data rooms employ various security technologies to safeguard your data:
1. Encryption
Encryption ensures the comprehensive protection of sensitive data, both during its storage and its transmission. It’s reliable and it just works.
Data encryption is like putting data into an impenetrable vault. It scrambles your data into unreadable code while it’s at rest on servers and while it’s traveling across networks. Hackers can’t do anything with it, even if they are able to intercept it.
Also, encryption standards continuously evolve, so a VDR using encryption keeps pace with new threats and ensures your data stays secure against ever more sophisticated cyberattacks.
DocSend uses an AES 256-bit encryption algorithm. This helps the tool to deliver an unwavering level of security for safeguarding your files. Encrypted eSignatures further ensure complete security. The files and the signed documents are encrypted in a VDR, so they're extra secure.
When you’re dealing with sensitive information like financial records, intellectual property, or personal details, encryption is the first line of defense.
2. Authentication
Authentication methods like multi-factor authentication and single sign-on (SSO) prevent unauthorized access. It’s a little bit like checking your wristband at a concert or music festival—ensuring only the right people get let in. This is critical during sensitive deal stages.
By requiring a password and also a second form of verification, like a code sent to your phone, it’s possible to prevent issues like unauthorized access during due diligence in M&A, which may potentially delay (or even collapse) a deal.
SSO, on the other hand, simplifies things while boosting security. SSO allows you to log in once and gain access to all your applications. It’s more efficient and reduces the chances of choosing a weak password. SSO also makes it easier to manage users and ensure everyone has appropriate access to a data room.
Authentication features maintain high security standards during critical deal stages or when handling sensitive data. They enhance protection but also optimize access, so your team can work efficiently without worrying about security gaps.
It’s easy to set user permissions and secure your logins in DocSend, including by using SSO. Read our help article and learn how to set up SSO in DocSend today.
3. Data loss prevention
Data loss prevention (DLP) prevents data leaks and breaches by screening who can or can’t get access to your information, so it’s perfect for a VDR.
DLP policies can restrict the unauthorized sharing of information and can help boost data security. They work by setting up rules that prevent unauthorized users from mishandling or sharing confidential data, such as blocking or encrypting sensitive files.
For instance, if a team member accidentally tries to send a client list to an external party, a robust DLP policy will flag and block it—stopping the information from getting out or prompting a security review. This is helpful for staying compliant with regulations like HIPAA or GDPR.
In a DocSend VDR, dynamic watermarks assist in DLP as they act as a deterrent against file sharing—encouraging more awareness in team members to avoid such mistakes.
4. Backup/recovery
Regular data backups and disaster recovery plans ensure business continuity, so they’re crucial preparations in case the unthinkable occurs. Regular backups are a safety net for your VDR, providing regular snapshots of your files—so you’ll never lose out if disaster strikes.
VDRs play a key role in backing up critical files, and providing peace of mind during transactions. You’ll always have everything you put in a DocSend VDR backed up with automated backup schedules that keep data secure.
Aside from restoring data, it’s also worth having a disaster recovery plan. This is a company plan that covers things like communicating with stakeholders, recovering critical business functions, and how to manage potential losses.
Automated backups and recovery plans for your VDR offer added protection during complex transactions when many files and documents are in play each day. Being proactive minimizes disruption if something goes wrong, protecting your reputation and data at the same time.
5. Access control
Access controls restrict access and protect data, which is a fundamental component of top-notch VDR security. If encryption is like putting your data in a vault, access controls are the lock.
Imagine you’re working on a complex merger—while the finance team might need to see every financial document, the legal team only needs access to specific contracts. Adjusting user permissions to reflect this can ensure precise file access and enhance overall VDR security.
Another example of access controls that enhance security is creating roles within the VDR, each with predefined permissions. This simplifies managing permissions and ensures consistency, reducing the risk of error while maintaining full control over who can view or edit documents.
You can easily change user roles (edit vs. view) and use permissions settings to protect data in DocSend. The tool bundles access controls and one-click NDAs together for even more enhanced confidentiality—leading to greater peace of mind with zero hassle.
With all of the above measures together, data is safe and sound in a VDR.
In the end, the most likely cause of a security breach is human error and failure to apply best practices when using the VDR. You and your team need to read up on what (and what not) to do. Read our article on security tips to when working with a VDR for more information.
FAQs about data room security
Here are our answers to a few common questions about VDR security:
How secure are virtual data rooms?
Virtual data rooms are highly secure, by combining features like top-tier encryption, access controls, and audit trails to keep your data safe from unauthorized access. It’s very unlikely a breach will occur. VDRs like DocSend employ a host of robust security measures to safeguard data.
What is the most important security feature in a VDR?
The most crucial security feature is encryption, ensuring that sensitive data remains inaccessible to unauthorized users, even if intercepted. Encryption is crucial for protecting data in storage and transit. The type of encryption DocSend uses is an AES 256-bit encryption algorithm.
What are the disadvantages of virtual data rooms?
The main drawbacks are potential costs and the learning curve, but these are outweighed by the unmatched security and efficiency they provide. VDRs require an internet connection and may have some user adoption challenges. DocSend has many learning resources and an intuitive interface to reduce learning curves, as well as flexible pricing options and a free trial to help manage costs.
Is DocSend compliant with data protection regulations?
Yes, DocSend security complies with various data protection regulations, including GDPR and HIPAA. Visit the Trust Center to learn more about DocSend security, compliance, and privacy policies.
Try the best virtual data room security features for free
DocSend VDR security features protect your data without compromising productivity. Start a free trial to see these technologies in action. It’s total protection—but with complete convenience.
The security and privacy of our customer data is at the forefront of everything we do. Protect your sensitive data with the best virtual data room security features by starting a free trial today.