https://boardroomnow.net/digify-establishes-new-standards-in-due-diligence-vdr/
A secure dataroom (also called a virtual room) is software that allows you to share sensitive information with other parties. It provides a streamlined safe and secure method for businesses to share documents with multiple parties with document tracking as well as version control and other advanced features. In the past, businesses have used emailing and spreadsheets to share their due diligence data but these are unsecured and can create a host of liabilities if wrong people have access.
Some’secure data rooms’ make a big point about the security of their servers are by affirming that they have encryption at rest on the hosting servers. This is great, but this does nothing to stop non-authorized users from gaining access and even if didn’t, the server hosts thousands of temporary files containing the content of your documents that could be easily downloaded by hackers using screen grabber software. The majority of browsers come with tools that let them take high-quality pictures from document pages. Secure data rooms are powerless to stop this.
Certain “secure data rooms” claim that their system blocks sharing by requiring users to sign-in using 2FA. However this is just an additional layer of security which doesn’t address the fact that users who are authorized are capable of copying and pasting links to others or forward their own emails that contain hyperlinks. Secure file sharing using DRM are a better option for businesses. They secure the files to a specific device and locations, so they aren’t transferred or shared.