A data room is a type of virtual storage solution that gives you a secure place to store documents. It also provides a number of other features that aid with the due diligence process. These features include annotations tools that allow for granular access, activity tracking, and watermarking.

Data rooms are often used to share security documents with clients (SOC 2 docs mobile security scanner or compliance certifications) in order to facilitate due diligence. Sharing this information with other parties before the deal closes is a great method to speed up the due diligence process and reduce the risk.

Email is a method employed by companies to share SOC 2 documents as well as other documents. This is not just inefficient, but also creates problems with revision control. It is also insecure with attacks on email increasing, which can lead to compromised mailboxes, stolen credentials and the phishing exploits.

Many secure storage and file sharing options, such as Box and Dropbox provide access to documents on any device or any location. They offer a high level of security, but the majority of people and businesses need more. Sensitive documents used to conduct due diligence, fundraising or negotiations should be stored and shared through software that provides higher levels of security than these personal file-sharing platforms.

The most important question to ask any "secure data room' is: does it stop authorized users from sharing documents with non-authorized users? Unfortunately the answer is generally "no". Most'secure data rooms' do not restrict the number of times the same user credentials can be used to access the system. It is easy for users to re-use logins from their own devices or simply copy and paste the URL into the browser of a colleague's computer.