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7 Practical Tips to Protect Sensitive Data

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Data protection is becoming increasingly difficult for individuals and companies every day. This can be due to a lack of understanding on how to protect sensitive information, or the sophistication of hackers. Regardless, it is important for businesses to take action. Sensitive information can be stored in a variety of formats, such as paper in a file cabinet, on local drives, or with a cloud provider. 

A security breach caused by insufficient enforcement of a security plan to locate, classify, and secure sensitive data can erode trust with employees, clients, and the general public. This is evidenced by the increasing frequency of major data breaches and the mistakes that lead to unauthorized access.

A Virtual Data Room (VDR), also known as a “Virtual Deal Room” in finance, is a secure tool for online document sharing. With a secure VDR provider, a business can securely store hundreds or thousands of documents with strict security protocols in place to ensure that only authorized individuals have access. These protocols are more stringent than those used by file-sharing apps.

What is data protection?

Organizations employ a variety of procedures and techniques for data protection. These procedures safeguard the data’s availability, integrity, and privacy. If something were to happen that rendered data unusable or inaccessible, this also includes the ability to restore lost data in case of an emergency. Data security and information privacy are other terms for data protection.

Data security measures guarantee that data is only accessible for approved purposes, protect against tampering, and keep the organization in compliance with legal requirements. Data should be available when necessary for its intended use.

Why is data protection strategy important?

Data is extremely valuable to businesses and hackers, and data breaches can have far-reaching effects on a company. From bad PR to revenue loss to legal fees related to data breaches, compromised data can cause havoc on a business. Keeping data secure is crucial when attempting to maximize synergies and expand businesses.

However, for most businesses, developing the ideal data protection strategy can take time and effort. Even bigger businesses can attest to this. Data breaches have grown in size and frequency over the past few years. They severely impact the finances and reputation of the affected companies. Sometimes, fundamental adjustments to corporate culture and operational procedures are necessary to comply with data privacy laws. It may be challenging to implement these changes if there is no clear strategy in place. Therefore, it is crucial to choose a reputable digital data room service provider that can ensure that your data is protected against hacker attacks and data loss.

Here are 7 data protection tips that you may find useful:

1. Protect your private documents in a virtual data room

A virtual data room is a great choice if you are looking for a safe way to keep your company’s documents. However, you have to pick a VDR with the appropriate security features.

A due diligence data room with a high level of encryption must be chosen. This demonstrates how you can protect your sensitive data from unauthorized users. Additionally, look for a provider that offers a variety of storage rooms and points. Choose a VDR that employs 256-bit AES data security to protect your data from unauthorized copying. Text, video, and audio can all be encrypted using this method.

2. Encrypt your data

Your company should encrypt its most sensitive data as a safety precaution, especially to stop unauthorized third parties from reading or editing sensitive data with ease. When preparing for cloud migration, implementing a zero-trust model for authorized access, and conducting business with sensitive data, such as a merchant transaction, this step can help protect sensitive data. End-to-end encryption prevents communication between two entities from being read or altered by any third party. Encryption can be implemented at the file system level, for specific files, or an entire storage device.

3. Use a password manager

When managing multiple accounts, it becomes more difficult for users to adhere to a strong password policy, such as refraining from using words and phrases, using a combination of letters, numbers, and special characters, and avoiding using the same password across accounts. This can result in passwords being written down or simply guessed, accounts being daisy-chained, and the potential severity of a security breach being streamlined.

To a certain extent, password managers can mitigate these problems. For each user account, password managers on a computer or mobile device can keep a vault of distinct, secure passwords, either locally stored or in a secure cloud. The staff of an organization will then find it simpler to implement best practices across all of their accounts.

4. Backup your data

Maintaining separate and secure backups of sensitive data is crucial to reduce the risk of loss due to unauthorized modification or ransomware attack encryption. Backup procedures for sensitive data will reduce the time required to recover from such an attack. Backups can also help you keep track of changes to your sensitive data and maintain an audit trail. Your sensitive data backups must, however, continue to adhere to data retention laws.

5. Use cloud services when possible

The cloud can provide a solution for protecting sensitive business data when used properly. Because cloud data is stored off-site, it is accessible even if your company’s hardware is compromised. You can ensure disaster recovery for your business when data is kept off-site by a provider using cloud storage.

6. Use a DLP solution

Data Loss Prevention solutions (DLP) are designed to prevent data leakage. Their primary purpose is to protect your organization’s data against insider risks.

DLP classifies and analyzes your organization’s sensitive data and ensures that your employees never share sensitive information with the wrong person via email, instant messengers, or upload it to the cloud. It safeguards your company’s data against malicious acts as well as accidental mistakes.

In the event of leakage, the system notifies you and helps investigate the whole incident. A DLP solution creates a safety net for your employees, granting them peace of mind even in case they make a mistake.

7. Watermarks

Watermarking — crucial data room solutions that aid in protecting sensitive data in a VDR. Watermarks include hidden data such as IP address, time, and date. They prevent unauthorized users from viewing the information and significantly aid in preventing identity fraud.7.

8. Always stay up to date

Organizations must stay on top of system updates for on-premises networks and computer security, even if cloud services implement their bug fixes and security updates. This is especially important for laptops designated for remote access or local computers. Those updates are necessary for system-level security holes that have been found to remain vulnerable to intrusion.


Every employee in your business is responsible for data protection. To build trust with customers, your company should demonstrate integrity, transparency, and security in handling sensitive data. Building that trust requires a strategic commitment to safeguarding the privacy of your customers. Because of these factors, implementing data protection measures should be a key component of your company’s overall strategy.

A good virtual data room software should undoubtedly provide a high level of assistance, including specialized customer support staff with experience in similar procedures. When you need assistance, you need to feel confident that you can call a real person and that they will promptly answer your questions.