How to Keep Sensitive Files Safe in a Virtual Data Room

The best way to keep sensitive files safe in a virtual data room is by implementing controls and best practices designed specifically to prevent unauthorized access. This article will go over several of these methods, including setting expiring links for files so that they can’t be viewed after a certain period, ensuring the provider has a legal team dedicated to data security, providing access based on specific permissions, and encrypting the files that you add before uploading them.

Provide access based on specific permissions and controls

You can also set permissions for specific users, groups, and roles. Permissions are based on whether a user can view, edit or delete a file or folder. For example, you may want to allow all employees access to certain documents within the virtual data room but not allow them to delete any of those documents. You can do this by setting up permissions for each file and folder in your virtual data room so only certain users have access rights over them.

Ensure the data room provider has a legal team dedicated to data security

A data room provider’s legal team is responsible for ensuring that the company complies with all relevant regulations, including those related to data security. For example, to be GDPR-compliant, you must also comply with HIPAA (Health Insurance Portability and Accountability Act), which requires that you protect patient information. If a provider has a dedicated legal team focused on data security issues, it will have access to experts who can help it comply with these regulations and ensure that your sensitive files are stored securely.

Encrypt the data you add

While the virtual data room is a secure place for storing your sensitive files, you don’t want to leave those files unprotected. To ensure that no one can access your encrypted data without the proper password, take these steps before uploading any documents:

Use a strong encryption algorithm: If you’re not sure what this means, don’t worry; there are plenty of tools online that will help generate strong passwords when given an encryption key and file length. Just make sure not to use one of them with automated scripts or bots—they’ll be able to crack weak passwords in seconds.

Set a password for your encrypted file: This step should be obvious enough by now, but it’s worth mentioning again because many people forget it once they start typing up their content and saving it as an encrypted document. This usually happens automatically after they’ve entered their encryption key.

Set expiring links for files, so users can’t view them after a certain time frame

You can set an expiration date on a link to a file so that users will only be able to access it for a certain period. This is important because sensitive files change over time, and you want your virtual data room’s users to be able to view the latest version of each file. If you don’t do this, people will keep using outdated versions of your documents, which could lead them to make decisions based on old information.

Audit logs track all user activity

Audit logs are a record of all activity in the virtual data room. They can be used to track who accessed what, when, and from where. They can also be used to track who changed what, when, and from where.

For example, let’s say you need to know if someone opened up your sensitive file on their computer at 3pm yesterday. Audit logs provide an easy way for you to find out this information because they include information about every action taken by your users—including someone opening a file or making changes to a document inside the virtual data room. This means that you don’t need to ask them directly; instead of asking each user individually whether they’ve looked at any particular piece of information, simply take advantage of the audit log feature to determine who is intearcting with files and when.


Data rooms can be a great tool for helping companies manage sensitive information during the acquisition process, but they are not a panacea. If you want to keep your files safe and secure, you need to take all the precautions outlined in this article.

Related Articles

Back to top button