Security of data room software includes several layers that safeguard sensitive information when it is stored, shared and collaboration. It comes with access controls to limit who can view, edit, and download files, as well as audit trails that record the user’s activities. It also offers a range of document encryption options that secure data both at rest and during transit. Other features, like watermarks, prevent unauthorized sharing by displaying an indestructible unique identifier on every file. It also comes with two-factor authentication that requires another verification method to allow users to log in and decreases the risk of malware. It should also enable secure spreadsheet viewing to guard formulas, PII, and other confidential data in Excel spreadsheets.
Many industries are subject to federal, state 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 can lead to fines, legal penalties, lawsuits and reputational damage. They can also cause disruptions to operations and even loss of revenue. Data room security helps to adhere to these laws and regulations since it ensures only authorized users have access to sensitive information. It also helps to prevent data leaks, as well as other security threats by reducing the chance of unauthorised users having access to sensitive information by hacking, malware or phishing attacks. It also includes end-toend encryption that encrypts files on the device that are being sent and decrypts them only on the device of the recipient. This blocks unauthorized data access, even if the file is accessed by someone else while being transferred. It also features activity monitoring, which monitors the activity of users and logs any changes made to files and alerts administrators to suspicious behaviour.
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