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Many businesses rely on secure online data rooms for the exchange of sensitive documents throughout various business processes and financial transactions. These tools facilitate complicated M&A deals due diligence, IPOs and more, and also increase internal transparency and project efficiency. Security breaches and hacking are increasing and it’s crucial to locate a data room with top-of-the-line security features for documents as well as access.

The best VDRs provide a variety of security features like multi-factor authentication session timeouts and session durations, location restrictions as well as granular user permissions for users and dynamic watermarking. They also provide advanced features for managing documents like view-only mode, screenshot blocking and encrypted downloads. Moreover, they provide advanced analytics and reporting to identify suspicious activities and speed up workflows.

VDRs allow you to create an encrypted firewall between your network as well as the cloud server that hosts the data you want to share, and the cloud server. This shields you from malware. They also have robust security of your infrastructure, with 24-hour redundancy in data centers as well as virus scanning and encryption of data to protect you from cyber-attacks.

Some VDRs utilize digital watermarks to protect your documents, however these can be easily removed by using a PDF editor. In addition, they don’t stop authorized users from sharing your files with non-authorized people. They’re not as secure as they seem.