Security of data room software includes several layers of protection to secure storage, sharing, and collaboration on sensitive information. It provides access controls for users to restrict who can access edit, download, and view files, as well as audit trails that track the activities of users. It also provides a variety of encryption options for documents that secure data both at its rest and during transport. Other features, like watermarks, protect against unauthorized sharing by displaying an irremovable identification number on each file. It also has two-factor authentication, which requires users to use a second form of verification in order to sign in. This reduces the risk for malware. It should also allow secure spreadsheet viewing to protect formulas, PII, and other confidential information contained in Excel spreadsheets.
Many industries are subject to federal, state 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 legal penalties and fines, lawsuits, reputational damage and operational disruptions as well as loss of business. Data room security is a way to meet these regulations and laws, since it ensures only authorized users have access to sensitive data. It also helps to prevent data leaks and other security risks by reducing the possibility that unauthorized users can gain access to sensitive information by hacking malware, phishing, and man-in-the middle attacks. It also comes with end-to-end encryption, which encrypts files on the device that are being sent and decrypts them only on the recipient’s device. This stops unauthorized data access, even if the file is accessed by someone else when it is being transmitted. It also has activity tracking, which monitors and records changes made to files by users and alerts administrators of suspicious activity.
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