Data room software security involves multiple layers that protect sensitive information during storage, sharing and collaboration. It includes granular access controls to limit who is able to view edit, download, and view files, and audit trails that document the activities of users. It also comes with a variety of encryption options to protect data at rest and in transit. Watermarks, along with other features like them prevent unauthorized sharing of files through the display of an identification number that is permanent. It also supports two-factor authentication which requires users to use a second form of verification to sign in. This reduces the potential for malware. It should also allow secure spreadsheet viewing to safeguard formulas, PII, and other confidential information contained in Excel files.
Many industries are governed by state, federal and international laws and regulations. These include the California Consumer Privacy act (CCPA), GDPR and HIPAA. Other regulations include SOC 1 and 2 and ISO 27001. Data breaches are often the cause of fines and legal penalties, lawsuits, reputational damage as well as operational disruptions, which can lead to loss of business. Data room security can help comply with these laws and regulations, as it ensures that 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 unauthorized users gaining access to sensitive data through hacking, malware and phishing attacks. It uses end-to-end encryption, which protects the data on the sender’s device and only decrypts them on the device of the recipient blocking access by unauthorized users to data even if the document is intercepted during transmission. It also includes activity monitoring, which tracks user activity and logs every change made to files and alerts administrators of suspicious behavior.
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