White Paper. Sealed Data Rooms: Secure, Easy, Convenient as Ever. Table of Contents. Uniscon GmbH, April 2014

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1 White Paper Sealed Data Rooms: Secure, Easy, Convenient as Ever Uniscon GmbH, April 2014 Table of Contents 1. Basic Prerequisites for a Virtual Data Room 1 2. Conventional Data Room Creation per Encryption 1 3. Enhanced Security with Encryption and Sealing 2 4. Service and Convenience Benefits of Sealing 3 5. Security Benefits of Sealing 3 6. Individual Features 3 7. Set-up and Administration 6 8. Auditing and Certification of IDGARD and Sealed Cloud Properties 8 9. References 8 Uniscon universal identity control GmbH The Web Privacy Company Managing Board: Dr. Hubert Jäger, Arnold Monitzer, Dr. Ralf O.G. Rieken Supervisory Board (Chairman) Herbert Kauffmann Agnes-Pockels-Bogen 1 D Munich p (+49-89) Commercial Registry: Amtsgericht München HRB Bank Account: Commerzbank München, Account No , BIN

2 1. Basic Prerequisites for a Virtual Data Room Historically, the term data room was linked to its purpose for mergers and acquisitions. Originally, during an M&A, companies had to create tightly secured rooms in which all files were stored that were necessary for due diligence, i.e., for auditing and corporate assessment. Those authorized access to the room were defined very strictly, and any absence was recorded and documented meticulously by security staff. Although such physical data rooms still exist today, virtual rooms have become the norm. The fact that they are by far less expensive, in particular, and grant access to files for work without incurring extra travel costs, constitutes one of their main advantages. Virtual data rooms seek to emulate physical data rooms, i.e. by: documenting access to the data room denying unauthorized access preventing file misappropriation or copies. Further convenient features may also be added digitally: notification of newly arrived files reminders of yet unread messages or files creation of miscellaneous data rooms with sundry access authorizations content related, formal and informal communication between parties of a data room Owing to their variety of benefits, data rooms are widespread and not only used merely for M&As but also for company internal and external projects, cross-corporate teamwork, and digital communication requiring minute documentation, in general: e.g., between contractors and customers, lawyers and clients, or attorneys of opposing parties, to name only a few. 2. Conventional Data Room Creation per Encryption The term secure data room is customarily associated with encryption technology. This allows physical access to signals and data, without one having to fear that content is read without authorization. Data can be safely transferred to a central processing unit, stored there, if necessary, and then forwarded safely to a recipient. This is done in one of two ways: Encryption is conducted by the data room provider in the data center. Security is determined by organizational measures and, hence, weak. Encryption occurs on the device or terminal, and the data is encrypted end-to-end. In this case, not all of the above mentioned features may be implemented. What s more, the provider not only has full access to metadata (i.e., who writes or reads what and when) and to data room access duration. This data is also secured by organizational means only. The latter situations are depicted in fig. 1: 1

3 fig. 1: Conventional data room security Besides the aforementioned weaknesses, conventional data rooms are also laborious to set up. Access data has to be transferred to each participant confidentially, and some devices require installation of local software. 3. Enhanced Security with Encryption and Sealing Sealed Cloud, the technology on which IDGARD is based, prevents access to the physical signals during processing. The stored data is encrypted to a degree that, thanks to key distribution, it cannot even be accessed by the service and infrastructure provider. Thus, IDGARD and Sealed Cloud complete overall risk coverage of IT security. Fig. 2 illustrates the technical measures applied when data is secured per Sealed Cloud. fig. 2: Technical measures of Sealed Cloud data security First, with a Sealed Cloud infrastructure, the data center is subdivided into various segments. Because of electromechanical control units and locks, employees can always only access one of these segments, if deemed necessary, e.g. for the purpose of maintenance. Access authorization is granted by an entity that has no physical or logical access to the system. Access in itself is logged comprehensively. In addition, both planned access by an employee and unplanned (cyber-attack) access attempts automatically trigger data clean-up. I.e., active sessions of cloud users are moved to an unaffected segment of the data center, and all data in the concerned segment is deleted. This is performed by IDGARD and Sealed Cloud so thoroughly, that the power of the application servers that 2

4 operate without persistent memory is actually cut off for 10 seconds, making even RAM ice-spray attacks futile. Every restart triggers an integrity check of the entire software stack, i.e., from hardened OS, through all software layers, to the application software. If the maintenance engineer were, e.g., to install uncertified software, the application server wouldn t even be able to restart upon segment closure. See [1] und [2] for further scientific details on the novel technical measures, 4. Service and Convenience Benefits of Sealing Since Sealed Cloud automatically takes over the entire key management centrally, neither the employee responsible for creating the data room, nor the users he/she invites has to cope with the complexity of key management. IDGARD requires no local installation and can be accessed with any browser. Online registration is also possible. The administrator of the business customer intending to use IDGARD simply selects a user name and password online and names the registering company. IDGARD can then be used instantly. This agreement (which is also available for a free trial period) is commensurate, by online confirmation of a model agreement, with the imperative of concluding an Agreement on Commissioned Data Processing in writing. The administrator can then instantly create accounts for employees and external data room users and invite them with only two clicks. Those concerned are notified by and text message. The includes a link that leads the recipient to a form in which the employee or guest can, in turn, choose an own user name and password. A Pass Code, which is required during registration, is sent to these recipients by text message. A further option is LDAP or MS Active Directory integration of IDGARD. The administrator or the employees defined by him/her can create so-called Privacy Boxes as data rooms. The inviting party simply selects the employees and external guests from a list and adds them to the data room. Regarding performance, IDGARD has the edge over customary data rooms by offering the following service and convenience advantages: Order-free online registration: IDGARD can be used instantly. No order waiting periods, no installation, no training necessary. 100% elasticity, i.e., licenses can be added or eliminated online. Day-to-day invoicing, accounted for by monthly invoice. Use-dependent payment. Employees and guests can access IDGARD accounts safely per and text message and be invited to various data rooms with only one click without complicated key management. 5. Security Benefits of Sealing Customary risk calculation methods, which rely merely on encryption and organizational measures, leave two problems unsolved: (1) content and metadata are not protected, when unencrypted data is processed and (2) metadata is especially easy to analyze, even if encrypted data is routed. In contrast, Sealed Cloud s following canonical set of technical measures[1] comprehensively complete an all-embracing security concept. Technical sealing protects user data against internal and external attacks. Technical sealing protects content and metadata against unauthorized access. 6. Individual Features Chart 1 illustrates the major features of four available categories of virtual data rooms. 3

5 Chart 1: Features of four available categories of virtual data rooms Features Data room with encrypted data transfer Data room with encrypted data transfer + storage Data room with E2E client encryption Sealed Cloud based IDGARD data room Protection against unauthorized access Protection against interception during transfer o.k., due to encrypted transfer o.k., due to encrypted transfer o.k., due to encrypted transfer o.k., due to encrypted transfer Protection against file tapping by unauthorized parties Unauthorized access to files fairly easy Protection against unauthorized access fairly good. Unfaithful provider employees can decrypt files o.k., due to E2E encryption o.k., due to encryption + sealing combination Protection against tapping of metadata, i.e. who was in the data room when and how often, what file was accessed. Data room provider employees can misappropriate metadata Data room provider employees can misappropriate metadata Data room provider employees can misappropriate metadata o.k., due to combination of encryption + sealing Documentation of the data room s visitors Journal / audit trail o.k. o.k. o.k. o.k. Easy export o.k. o.k. o.k. o.k. Protection against file distribution by data room visitors Read only access to files o.k. o.k. o.k. o.k. Watermark o.k. o.k. o.k. o.k. Notification of data room manager of massive downloads o.k. Additional features und costs Set-up & installation - Normally, local installation recommended Local installation normally necessary No installation necessary Support of mobile devices - To some extent To some extent o.k. Communication with others who are granted access To some extent To some extent To some extent Communication, chats, appointments Cost structure Normally, set-up expenses + usage cost Normally, set-up expenses + usage cost Normally, set-up expenses + usage cost No set-up expenses, 100% elastic, data rooms individually bookable day-by-day The following data room screenshots illustrate the feature s convenience. Fig. 3 shows how IDGARD turns a conventional Privacy Box into a data room, provided the employee was authorized by the administrator to do so: 4

6 fig. 3: Checkbox for converting a conventional IDGARD Privacy Box into a data room. This checkbox appears when a new Privacy Box is created or an existing one modified. Fig. 4 illustrates a typical outline of a Privacy Box, set up as a data room. As with any privacy box, one can now create folders and sub-folders, to file information. A journal may also be requested. fig. 4: Data Room 1 screen view. A button appears, with which to summon the journal. The display shows a series of folders and sub-folders and their respective files. Fig. 5 illustrates the selected journal, showing the time filter and print option buttons, as well as upload, download, deletion, and read-only icons. 5

7 fig. 5: Journal screen view Fig. 6, lastly, illustrates the options one has when uploading a file. fig. 6: File upload options IDGARD data rooms are so easy to use and well-structured, that the mentioned four screenshots already constitute an instruction manual. 7. Set-up and Administration Data room set-up and administration are equally simple. Screenshots are shown here, too, for clarity. Fig. 7 illustrates the contract status page of an administrator account, which always shows the current booking status. The number of guest licenses and data rooms can be increased or decreased arbitrarily (100% elasticity). 6

8 fig. 7: Do-it-youself data room creation (customary creation also possible) All the administrator has to do now, is authorize the individual employee(s), to create IDGARD data rooms out of IDGARD Privacy Boxes. Fig. 8 illustrates a list of IDGARD sample account users and how an administrator authorizes an employee to create a data room. 7

9 fig. 8: Authorizing an employee to create data rooms 8. Auditing and Certification of IDGARD and Sealed Cloud Properties Uniscon, the provider of IDGARD, operates pursuant to BSI-Grundschutz, i.e., the German Federal Office for Information Security s baseline protection catalogues. Part of the service has already been certified by the independent technical auditing association TÜV-iT. A checklist titled IDGARD gemessen am Eckpunktepapier Cloud-Security des BSI (roughly: IDGARD as Measured by BSI Cloud Security Cornerstones ) is available at Uniscon GmbH is one of four service providers besides Telekom AG, SAP AG and region-it GmbH, to participate in the German Federal Government s pilot project Data Protection Certification. A comprehensive documentation and certification package on Uniscon GmbH [4] unites all documentation on Uniscon GmbH, the service IDGARD and certification. Certification includes all documents (35 in total) that are necessary for the selected and documented certification strategy. 9. References [1] Hubert Jäger et al., A Novel Set of Measures against Insider Attacks - Sealed Cloud, in: Detlef Hühnlein, Heiko Roßnagel (Ed.): Proceedings of Open Identity Summit 2013, Lecture Notes in Informatics, Volume 223, ISBN , pp [2] Hubert Jäger, et al., The First Uniscast Communication System protecting both Content and Metadata, in the proceedings of the World Telecommunication Congress [3] Steffen Kroschwald, Verschlüsseltes Cloud Computing, Anwendung des Daten- und Geheimnisschutzrechts auf betreibersichere Clouds am Beispiel der Sealed Cloud, in: Taeger, J., Law as a Service (LaaS), Recht im Internet- und Cloud-Zeitalter, Tagungsband Herbstakademie 2013 (Band 1), 289. [4] Documentation and Certification Package for Uniscon GmbH and the service IDGARD, available at

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