What kind of file sharing solutions are you using? Are you sharing your personal videos, movies and photos or are you sharing highly confidential proprietary information? Your requirement determines whether the solution you should consider is secured or unsecured.
When it comes to sharing personal information with friends and family then consumer grade file sharing solutions might work well; they are designed for the purpose of getting your files to the intended viewer in a secured manner. In such a scenario you should take the basic precautions necessary in terms of password protection and then assume that the person you are sharing your files with, will share it with others. In the case of sharing sensitive confidential information, as is the case in most mergers and acquisitions, it is not enough to ensure that only the intended party gets to see the documents. You also want to make sure that the viewers to your files cannot share them with others even if they want to do so.
Strict NDAs are often signed between the company sharing their documents and the participants getting access to them but sometimes those NDAs are difficult to enforce, especially if you are dealing with global businesses who come in the legal jusrisdiction of their respective countries. They are also difficult to enforce because it is nearly impossible to trace who was the person who leaked the documents. This is one of the pivotal reasons why secure file sharing solutions such as virtual data rooms exist. They keep a track of each users activity while ensuring that the rules are followed. By restricting copying and printing of documents the users find it impossible to circumvent the system. In addition the watermarking feature splashes the name of the user on each page making it improbable that they would risk the consequences associated with the breach of their NDA contract.
Conclusion
There are many file sharing solutions to choose from. Consumer grade solutions are secure enough for personal information sharing but unsecure to meet the needs of businesses that share confidential information. Its best to consider Virtual Data Rooms when highly confidential information is being shared because they exist for the sole purpose of sharing and more importantly maintaining the security of their documents even after they have been shared.
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