Secure data rooms are able to encrypt all documents as they move between servers and are stored, unlike storage and file sharing services such as Dropbox which only protect documents during the uploading and downloading process. This is essential to stop hackers from gaining access the data in the event that it is lost.

However it is crucial to remember that most data rooms are only as secure as the security measures implemented by the server hosting them. Therefore, whilst encryption of data in rest is vital, it’s still not enough to ensure complete security. In addition, it is worth asking if a data room’s system encrypts the temporary files that are created by downloading documents to the browser – if not, that could result in thousands of documents unprotected sitting in the clear on a server that could be easily attacked.

Another important feature is the ability to add personal notes to documents that can only be viewed by the person creating them – this reduces the risk of third parties being able to view confidential information, and also improves collaboration during due diligence. The best secure datarooms also include dynamic watermarks that change in real-time, preventing uninvited file sharing. They can also be used to track the origin of a file if it is exposed.

Also, ensure that the data room is compatible with industry-standard security standards by ensuring that it has ISO 27001 certification or other similar assurances. Also, look for a secure data space that check out here has robust encryption techniques and provides detailed reports on user access and activity.