Many businesses rely on secure online data rooms to exchange sensitive documents during various business processes and financial transactions. These solutions can facilitate complicated M&A deals, due diligence, IPOs and more, and can also improve internal transparency and project efficiency. Security hacks and breaches are always increasing and that’s why it’s essential to look for a reliable virtual data room that has top-of-the-line document and access security features.

The best VDRs provide a variety of security options, such as multi-factor authentication sessions, session timeouts, geographical restrictions, granular user permissions and dynamic watermarking. They also offer advanced tools for managing documents, including the ability to view only, screen blocking and encrypted downloads. Furthermore, they provide advanced analytics and reports to prevent fraudulent activities and improve workflows.

VDRs allow you to create an encrypted firewall between your network as well as the cloud server that hosts the data you wish to share, and the cloud server. This helps protect you from malware. They also provide strong security for your infrastructure, like 24 hour redundancy of data centers and virus scanning.

Certain VDRs employ digital watermarks to protect your documents, however these can be easily removed with an editor for PDF. They can’t prevent authorized users from sharing files with people who aren’t authorized. Therefore, they are not as secure as they appear at first glance.