Security of data room software includes multiple layers that protect sensitive information during storage, sharing and collaboration. It has granular controls that limit the access of users to download or edit files and who can view them. Audit trails are also provided https://dataroomanalytics.net/ to track user activities. It also offers a range of encryption options to safeguard data both in the rest and during transit. Other features, such as watermarks, protect against unauthorized sharing by displaying an indestructible unique identifier on every document. It also comes with two-factor authentication, which requires a second verification method for users to log in and reduces the chance of malware. It should also allow secure spreadsheet viewing to safeguard formulas, PII, and other private information in Excel spreadsheets.

Many industries are subject to federal, state and international laws and regulations. These include the California Consumer Privacy act (CCPA), GDPR and HIPAA. Other regulations include SOC 1 and 2 and ISO 27001. Data breaches often result in legal penalties and fines, lawsuits, reputational damage and operational disruptions as well as loss of business. Data room security assists in meet these laws and regulations because it ensures that only authorized users have access to sensitive information. It also helps to prevent leaks of information, as well as other security threats, by reducing the chance of unauthorized users being able to gain access to sensitive information by hacking, malware and phishing attacks. It is a complete encryption system that secures the documents on the device of the sender and only decrypts the files on the device of the recipient and prevents unauthorized access to data even if the file was intercepted during transmission. It also includes activity tracking, which monitors and logs changes made on files by users and alerts administrators to suspicious behavior.