A secure dataroom is a cloud-based system designed to store and share confidential business information. It is often utilized in M&A due diligence, IPOs, litigation, fundraising, and other document-based processes. It offers a higher level of security than online file sharing services. The server space is secured to block hackers from accessing content. Many also offer features like granular permissions and search capabilities.

These features do not prevent authorized users from making copies of files they have access to and sharing them with other users. This is done very easily. These services do not provide a hyperlink that could identify the source of the unauthorized distribution.

This is the reason why it’s vital for businesses seeking a more sophisticated way to store and share files to consider a virtual data room (VDR). As opposed to the low-level security offered by email, Google Drive and Dropbox, VDRs protect confidential information as well as intellectual property by utilizing advanced encryption and tracking data room software features that make it difficult for users to copy or distribute protected files. Dynamic watermarking provides unique identifiers, such as the email address of the recipient as well as IP address to each document to prevent unauthorized sharing. In addition, a robust data storage facility such as Digify can automatically track which documents are being read by whom, how often and for how long.