3 Easy Steps To Securing Financial Data Through Best Virtual Data Rooms

Many companies these days are choosing to install a Virtual Data Room for the business as a cheaper alternative to hiring full-time IT professionals or purchasing multiple secure storage servers. Here is more about the Data Room protection system.

Virtual Data Room – a perfect alternative to keep your financial data safe

The advancing digitization generates steadily increasing amounts of data, the use of which offers considerable social and economic potential. The economic advantages include increased productivity, process optimization, or innovations in the form of new products and services. The linking of different data sources and their analysis opens up additional opportunities for added value, especially thanks to the methods and processes of artificial intelligence (AI).

The central collection and analysis of much of this data in the cloud characterize a higher level of value creation in digitization, especially in the consumer sector. This development explains why the rapidly scaling Virtual Data Room (VDR) offerings emerged from the market of large web providers.

When most people think of secure data storage, they immediately conjure up images of an incredibly complex system that is as difficult to manage as it is to install. However, the truth is that creating a Data Room is actually easier than most people think. What makes the software solution so easy is the possibility of meticulously changing the settings of your Data Room for companies.

VDRs are often associated with a data protection system that is easily adaptable to any type of business, including the needs of smaller businesses. A VDR is not only efficient protection against loss, illegal access, and misuse of your company’s data, but also cost-effective protection against data leaks. It can often be installed in your existing network. This means that you have instant privacy and data security even when your IT department is down.

The most obvious benefits of installing a Data Room for businesses are the significant reduction in the technology and costs associated with a data management solution. In other words, it is an inexpensive way to process all of your sensitive information.

How does the software work?

Providing a highly secure repository for financial data processing is just the first step in using the virtual data room. In the second and third stages, you need to move the data to a secure cloud server and make sure that it remains safe here. The latter can be achieved with full encryption of virtual hard disks: if access is required, the data is decrypted when it is read, and then encrypted again when it is written to the disk. It avoids situations where unencrypted information enters the long-term storage systems of service providers or is backed up.

So, there are 3 easy steps to securing financial data through the Data Room software:

  • Data encryption. Financial information is processed almost in all business deals and transactions. The transmission of such information over the software without any protection can lead to irreparable consequences. Therefore, the data must be encrypted and transmitted over a secure channel. To implement secure data transmission, the Secure Sockets Layer (SSL) protocol is used.
  • Authentication implies confirmation of the user’s identity and digital signature to verify the authenticity of documents involved in the exchange of information and financial transactions. 
  • Intrusion Detection Systems (IDS) can identify patterns or traces of attacks, generate alarms to alert operators, and induce routers to disconnect from intruder sources. These systems can also prevent attempts to cause a denial of service in the Data Room.