Securing Your Most Important Files

It sometimes seems that the further technology and the future progresses, the more digitized the world becomes.

Music is rarely bought in a physical form now, it is downloaded. The same goes for video games. Much of our important information is held on the cloud or external HDDs.

While some digital files such as music can always be replaced if it is lost, other more sensitive information cannot. Not only can such data become lost, or corrupt, it can also be stolen.

Research materials, intellectual property, financial information. All of this needs sure storage, and to be kept out of the way of hackers and criminals.

What methods do individuals use for securing important files?

When it comes to the average man on the street, then there are a variety of ways to keep files safe.

Knowing how to secure your data is vital for anyone who goes online, whether they are using the net for leisure, or business.

Regular methods include using firewalls, cloud storage, flash drives, backups, strong passwords, cold wallets for crypto, VPNs, encryption, and virus protection.

This is all fine, but none of these offers the level of protection needed when you are dealing with potentially valuable data.

Why are some of these methods not practical in business?

All businesses operating online in some fashion should be using some of the above security methods. Certainly, virus protection, firewalls, and backups are essential.

When it comes to storing very important files businesses need far higher levels of security and encryption.

Looking at CNBC’s report on the biggest data breaches in history, it is clear that even the biggest brands in the world are at risk.

If they cannot keep their files safe, what options should you look at?

What other method could be used for high security for files?

Financial institutions need to have the highest levels of security for obvious reasons. They hold incredibly sensitive data pertaining to their clients and their finances.

They are also responsible for dealing with a variety of transactions, some of which could involve billions of dollars. Having any form of data breach there could be truly disastrous.

Bitfinex found out at their cost what happens when hackers can get past cybersecurity in 2016. However, when it comes to keeping important files safe, there is one well-regarded option; virtual data rooms.

Data room security is absolutely vital when mergers, acquisitions, and other financial transactions take place.

Yet, data rooms can also be used to hold documents for scientific research, or any files that need complete security surrounding them.

What are these data rooms?

When you look back at the storage methods that some home users and small businesses use, you will notice cloud storage.

Data rooms also exist as a kind of cloud storage, except that their encryption levels are more akin to the military than say OneDrive.

A virtual data room exists for the purpose of uploading important files and then allowing the sharing and viewing of said documents.

The difference between data rooms and normal file sharing is that there is a host of security features behind them. This is why huge businesses trust them in important transactions.

What sort of businesses use virtual data rooms?

All manner of industries use data rooms including investment bankers, tech companies, and any business that is preparing for an initial public offering.

More interesting than the types of businesses using data rooms, is the reasons why. For storing important and sensitive files, their uses are almost endless.

Typically you may find a data room being used for the following:

  • Property information including assets
  • Finance and tax information
  • Capital stock
  • Research material
  • Intellectual property
  • Scientific data
  • Sales data
  • Future sales predictions

These rooms are often used in M&A transactions, and access is granted to select people.

How do data rooms keep important files safe?

Firstly, a data room typically has an owner. This person is the one who can grant full, or limited, access to other parties.

These people may be accountants, lawyers, advisors, or auditors. Anyone involved in due diligence would have to have some level of clearance to view the files in the data room.

To keep these files safe there is ISO standard encryption involved. Multi-level authentication is also used.

Once past the initial security, there is then a host of other features that allows the file owners to keep control over their data. Documents can delete after a set time, they can be watermarked, and they can be redacted.


The security for cloud computing is evolving all the time as experts try to keep ahead of hackers. However, data rooms are already several steps ahead of your average cloud storage.

Important files need to be kept in a highly secure area. Especially when they are invaluable to rival parties or criminals. A virtual data room offers the type of security enjoyed by the biggest financial institutions in the world.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.