The security of confidential information during financial and business transactions is crucial. Virtual data rooms allow users to store and share confidential documents in a secure environment. They are commonly used to carry out due diligence in M&A transactions, but they can also be used for visit this page other reasons.

The best VDRs offer a range of options to ensure that documents are safely stored and shared during a transaction or process. They can, for instance include two-factor verification, which requires that not just the password is used, but also factual information and codes specific to each individual user. This decreases the chance of data breaches caused by compromised passwords. Many VDRs also have granular permissions which can limit access to certain files. IP restriction is another feature that restricts access to virtual data rooms to specific IP addresses. This protects sensitive information from being downloaded to unauthorized devices and also prevents leaks.

Other features that are available on certain VDRs include watermarking, which is an unchangeable identifier on every document, and audit logs that track the actions of documents within the data room. These are used to determine who has accessed or modified files, and they can also help in the investigation of data breach. Secure spreadsheet viewing is another useful feature. It assures that Excel files are only accessible by specific users.

When selecting a data room make sure you check its certifications and standards to verify that it is able to provide the proper level of security for your documents. It should be PCI DSS Level 1 ISO 9001 / ISO 27001 FIPS 140-2 MTCS Level 3 Some investment banks have a list of approved vendors that lists data rooms they are happy to work with. You should look for a data room provider who has these credentials and has a great reputation within the industry.