data room security

Is a Secure Data Room the Best Way to Meet Security Standards?

Aug 10, 2021

Compliance with data security standards is fundamental to the success of any industry. Unfortunately, businesses have suffered from hackers and have been at high risk lately. Whatever the reason, this is indicative of low security in organizations. 

Why is data protection so crucial? What benefits do virtual data rooms provide? Let’s find it out.

Why is data security so important?

Data protection is still a top priority for companies. The following statistics are solid evidence of this.

  • Cyberint reported that 43% of attacks hit small businesses. That would mean these organizations mistakenly believe only corporate giants are in danger.
  • IBM says that they invested an additional $137,000 to increase data security due to an increase in remote work during the COVID-19 pandemic.
  • An IBM study found that 19 out of 20 security breaches are due to human error. So, global business needs IT developers who take this fact into account.

One more point highlighting the urgent need to ensure data protection is damaging breaches worldwide. Let’s take a look at some of the most prominent ones.

  • MGM Resorts — major US resort management company. Information on nearly 11 million hotel visitors became available online. According to representatives, passwords and credit card data remained safe. However, hackers managed to obtain and sell contact information for celebrities and govofficials.
  • Facebook — American social media site. About half a billion social network users fell victim to hackers. Among them, 11 million UK users. Representatives say that a flaw in the search function caused the breach. The option, which is no longer available, made it possible to find a person by searching a phone number.
  • Tesco — British retail chain. Tesco argued that the attackers did not gain access to financial data. Even so, hackers gained illegal access to usernames and passwords for other platforms. Tesco acted quickly — they canceled and reissued 600 thousand cards. Security experts never underestimate the danger of such a hack. Behind this are actions that cause irreparable damage.

Speaking of business today, a chief technology officer of Community IT, Matthew Eshleman, noted: 

“In our modern economy, most companies have things that attackers want — information and money. Cyber threats face organizations of every size.”

How can secure data rooms help?

Data room security includes measures to ensure confidentiality comprehensively. It is important to note that the following safety practices add protection to companies in all industries from all types of threats.

Centralized and secure data storage servers

The server is the centralized storage base for virtual data rooms. Users use their credentials to log in. Access is only possible once the device has contacted the server. There are two types of solutions — on-premise and cloud-based.


  • An organization is responsible for maintaining and monitoring its server.
  • Threat prevention depends on staff professionalism and skills.
  • The expenses are higher as compared to cloud services. It includes the cost per server and potential configuration changes.
  • It’s possible to access secure virtual data rooms without an internet connection using the Local Area Network.


  • A third party is responsible for maintaining and monitoring the server.
  • Threat prevention is the job of IT cybersecurity experts.
  • The expenses are lower as compared to on-premises data rooms.
  • Access to workspaces is available only via the internet.

Compliance with global security standards

The secure data room services quality mark is compliance certifications. As a rule, the standards are strict and meticulous, which increase the quality of the services. Here are some examples:

  • ISO 27017 and 27108. These certificates play a significant role in the reliable functioning of the software. They are a newer version of the ISO 27001 system. ISO 27017 regulates the security aspects of the cloud. ISO 27108 provides guidelines for preserving the integrity of personally identifiable information.
  • SOC 2. VDR SOC 2 compliance indicates a service that meets the requirements for cloud tools. The standard focuses on the integrity of client data, access, and processing under strict policies. A company must have a safety program and educate staff about the potential network risks.
  • HIPAA. This regulation governs the access and distribution of Protected Health Information. Consequently, medical institutions trust HIPAA-compliant software with valuable data. Such entities demonstrate technical, physical, and administrative security measures for data storage.

Elimination of the human factor

Developers took user error into account, as unintentional actions often cause data leaks. Tools for controlling and monitoring the entire team are special features designed for managers. They can both avoid making dangerous mistakes in advance, and hopefully prevent them all together over time.

Secure virtual data room features

Secure data rooms strive to achieve high-level protection — first and foremost. Consequently, the following features provide significant and sustainable risk reduction compared to other tools.

Two-step authentication 

The extra step is an extra security measure to verify the identity of the user. Users receive a randomly generated password on their mobile phones via SMS. Once verification is complete, from that point forward, authorized users only need a password to log in to the system. 

256-bit encryption

Data encryption ciphers information so that third parties cannot view it. The number 256 here refers to the size of the key algorithm used for encoding. An attacker would need 2256 (or 1.1 with 77 zeros after it) attempts to hack a system. Government agencies rely on and trust the algorithm with their data.


The program automatically applies watermarks to indicate document ownership. The seal not only alerts users that their viewing or downloading copyrighted material, but it also serves as a way of tracking files.

Activity tracking

Data room administrators are aware of up-to-the-minute activities. The program creates reports and provides them to managers on a set schedule, which are available online. Tracking features monitor user activity, so admins can see who viewed what documents, when, and for how long. That is one way to spot suspicious activity in time.

Access to documents

This function configures settings for specific file or folder viewing or usage. Managers can allow or block the ability to view, edit, forward, or download information — they can even disable screenshots.

Role-based access

Before setting up a virtual data room, an admin should divide the staff into groups. Doing so will help set bulk permissions that correspond to job responsibilities. These restrictions limit viewership on a need-to-know basis and help protect against unauthorized access to prevent data breaches.