When we think of threats to data security, most people imagine hackers exploiting software vulnerabilities or orchestrating sophisticated phishing attacks. Rarely do we consider the far more common – and often more damaging – culprit: human error. In the age of digital transformation, where sensitive data travels across multiple networks and devices, one misstep from an employee, vendor, or stakeholder can be all it takes to breach a secure environment.
Within virtual data rooms (VDRs), which are designed to handle highly confidential documents for due diligence, mergers, acquisitions, and strategic transactions, the risks posed by human error can be especially devastating. From incorrect permission settings to accidental file sharing, human misjudgements can leave even the most secure systems wide open to exploitation.
The Comforting Illusion of Security
Virtual data rooms are built with robust security infrastructures – encrypted file systems, access controls, multi-factor authentication, dynamic watermarking, and detailed activity logs. On paper, they are fortresses. But even the strongest fortresses can fall if someone forgets to lock the gate.
Therein lies the danger. A strong VDR may lull organisations into a false sense of security, leading them to overlook the fact that most cyber breaches originate not from technical flaws, but from user mistakes. Clicking on a malicious link, uploading a confidential document to the wrong folder, or granting access to unauthorised users can all create vulnerabilities that attackers are quick to exploit.
Common Human Errors in Data Room Usage
Let’s look at some of the most frequent – and often unintentional – human errors that undermine the integrity of virtual data rooms:
1. Improper Access Permissions
Assigning the wrong access rights is a critical mistake. Whether it’s giving download rights to a viewer who should only have ‘view only’ access, or letting unauthorised users access confidential folders, a single error in permission configuration can lead to irreversible data leaks.
2. Mishandling of Login Credentials
Using weak passwords, reusing login details across platforms, or sharing credentials informally are practices that remain alarmingly common. Attackers exploit this behaviour through credential stuffing and brute-force attacks, making it easier for them to gain entry.
3. Failure to Use Security Features Properly
Many virtual data rooms offer advanced features such as watermarking, time-bound access, auto-indexing, or restricted printing. However, these are often underused due to a lack of user training or awareness, leaving documents more vulnerable than necessary.
4. Accidental Sharing or Misplacement of Files
In high-pressure environments like M&A deals or legal investigations, it’s not unusual for users to upload the wrong version of a file, send a document to the wrong stakeholder, or mislabel folders. These lapses may seem small, but they can result in the loss of sensitive IP or compromise compliance obligations.
5. Delayed Revocation of Access
Once a deal stage is complete, external users such as consultants or investors may no longer require access. However, many organisations delay or forget to revoke user permissions, leaving legacy access paths open indefinitely – a perfect target for social engineering attacks.
The Attackers Are Watching
Cybercriminals are opportunists. They are constantly monitoring the digital landscape for openings, and human error often provides the easiest entry point.
Phishing emails targeting executives with access to virtual data rooms have become more sophisticated, mimicking legitimate system notifications to trick users into clicking malicious links. Similarly, attackers are adept at exploiting gaps in user training. If someone is unfamiliar with how to properly set document permissions or interpret security alerts, they are more likely to make dangerous assumptions.
Moreover, social engineering attacks – which manipulate individuals into revealing confidential information – thrive in organisations with poor user awareness. One wrongly answered query in the VDR’s Q&A section could reveal sensitive financial data or inadvertently confirm strategic intentions to hostile parties.
Consequences Beyond the Breach
The aftermath of a security incident caused by human error can be costly, not just financially but reputationally. Here’s what’s typically at stake:
- Loss of Confidential Information: Sensitive trade secrets, financial data, legal contracts, and intellectual property can all fall into the wrong hands through simple errors.
- Regulatory Penalties: For companies handling personal or sensitive data, breaches may lead to violations under GDPR, HIPAA, or other data protection laws, triggering fines and legal action.
- Deal Disruption: In the context of M&A or investment transactions, a data breach can delay or derail a deal entirely, damaging trust and negotiating positions.
- Erosion of Trust: Clients and partners expect their data to be handled with care. A breach, even if accidental, can damage long-term relationships.
Mitigating Human Error in Data Room Environments
While human mistakes can never be entirely eliminated, their frequency and impact can be significantly reduced through a combination of proactive strategies and smart technology. Here are some of the most effective approaches:
1. User Training and Onboarding
Every user – whether internal or external – should undergo mandatory training before accessing the data room. This training should cover document classification, proper file uploading techniques, permission settings, and how to use security tools correctly.
2. Role-Based Access Controls
Avoid giving blanket access to every user. Instead, configure access based on roles and responsibilities. This principle of least privilege ensures users only see what they absolutely need to.
3. Audit Trails and Monitoring
Enable detailed activity logs to track every action within the data room. This allows administrators to spot unusual activity patterns and take corrective action immediately.
4. Two-Factor Authentication (2FA)
Implementing OTP-based access ensures that even if login credentials are compromised, unauthorised access is prevented. It also reinforces accountability among users.
5. Auto-Revocation of Access
Set expiry dates for external user permissions or ensure that there’s a periodic review process for user access rights. This helps in shutting down dormant access routes.
6. Use of Advanced Document Controls
Make full use of features like dynamic watermarking, secure document viewers with restricted copy/paste functionality, and fence view technology that blurs sensitive documents when users navigate away from the active window.
7. Integrate with Trusted Storage Platforms
Allow uploads from reliable cloud services like Dropbox, Google Drive, or OneDrive, reducing the chances of data corruption or unauthorised third-party uploads.
Building a Culture of Digital Responsibility
Ultimately, reducing human error isn’t just a technical issue – it’s a cultural one. Organisations must instil a sense of digital responsibility at every level. Leadership teams should lead by example, championing data security as a strategic priority rather than just a compliance requirement.
Creating a culture where employees feel accountable for the digital assets they interact with is essential. This involves not only equipping them with the right tools and training, but also fostering an environment where mistakes are acknowledged, analysed, and learned from – not buried.
Regular security drills, feedback loops, and post-incident reviews help reinforce awareness. Employees should be encouraged to report suspicious activity or potential lapses without fear of retribution. Over time, this builds a proactive, vigilant workforce that becomes a line of defence rather than a point of vulnerability.
Conclusion
No virtual data room is immune to human error. In fact, the more user-friendly and accessible a platform becomes, the more likely it is that mistakes may occur if not counterbalanced by the right processes and culture. It’s not enough to rely on technical safeguards; a human-centric approach to security – involving training, awareness, and accountability – is just as crucial.
DocullyVDR understands the unique challenges posed by human error in high-stakes environments. With over 17 years of experience and more than 5,000 deals supported, the platform is built not just for security, but for usability. From secure document viewers and dynamic watermarking to advanced Q&A, granular permissions, and OTP-based authentication, DocullyVDR integrates the tools needed to prevent human missteps while enabling teams to collaborate and close deals faster. With data hosting options in 50+ Microsoft Azure Data Centres and features like auto-indexing, drag-and-drop uploads, and smart notifications, it transforms human error from a silent killer into a managed risk.
