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Security of data room software includes multiple layers of protection that secure sharing, storage and collaboration with sensitive data. It has access controls that are granular to restrict who can access or edit documents, as well as audit trails that document the user’s activities. It also comes with a variety of encryption options to secure data in storage as well as in transit. Other features, like watermarks, stop unauthorized sharing by displaying an unchangeable identification number on each document. It also has two-factor authentication that requires users to use a second method of verification in order to sign in. This lowers the risk of malware. It should also support secure spreadsheet viewing to protect formulas, PII, and other confidential information contained in Excel spreadsheets.
Many industries are subject to federal, state international, and state laws and regulations, like the California Consumer Privacy Act (CCPA), GDPR, HIPAA, FISMA, SOC 1 and 2, SOX, and ISO 27001. Data breaches typically result in legal penalties and fines, lawsuits, reputational damage as well as operational disruptions, which can lead to loss of business. Data room security facilitates compliance with these regulations and laws by ensuring that only authorized individuals have access to shared information. It also helps to prevent leaks of data and other security threats by reducing the chance that unauthorised users gain access to sensitive data through hacking malware, phishing, and man-in-the-middle attacks. It also features end-to-end encryption that encrypts data on the sender’s device and then decrypts them on the device of the recipient. This prevents unauthorized data access, even if the file is accessed by someone else while being transmitted. It also incorporates activity tracking, which tracks and logs changes made on files by users and alerts administrators of suspicious activity.
