Some documents are given the designation of important and sensitive as they contain information that could trigger effects in the event of a security breach such as personal data, health and wellbeing records, or financial transactions. In the past, these documents were exchanged using physical means, which required many key stakeholders including executives and accountants to lawyers, to external and internal employees — to be in the same place at the same time to examine them. It was time-consuming and expensive method to send documents that were vulnerable to www.myhomedataroom.com/why-is-secure-file-sharing-important-to-law-firms theft and unauthorized access.

With remote work on the rise and B2B purchasing becoming increasingly internet-focused sharing digital documents has become a crucial aspect of business operations. While this is a great convenience but it also comes with risks. The majority of business owners are unaware of the risks.

Cybercriminals can steal emails and use the data for identity theft and malicious activities. It is also difficult to determine who has viewed or edited documents sent by email.

A secure document exchange portal is a convenient method to share customer files and keep track of who has access to them and how they’ve been modified. These tools are designed to satisfy various data protection laws and provide a solid audit trail, which makes it simple to trace any possible issues back to the source. They also assist businesses in avoiding the penalties that come with data breaches, which could severely damage their reputation and financial performance.