← Return home

Security Whitepaper

Version 1.0 | December 17th, 2024

Security Overview

At Straum, security is not an afterthought—it's the foundation of everything we build. Our capital raise orchestration platform is designed with a security-first approach, ensuring that sensitive investment data and communications are protected by multiple layers of defense.

This whitepaper outlines our comprehensive security architecture, practices, and protocols. We believe in transparency and want our users to understand exactly how we protect their information.

Core Security Principles

Deterministic - Predictable, verifiable state transitions

Private - Your data belongs to you alone

Secure - Industry-standard encryption and protection

Transparent - Open about our security practices

Compliant - Adherence to financial industry standards

System Architecture

Straum employs a multi-layered security architecture designed to protect against various threat vectors while maintaining high performance and availability.

Zero-Trust Architecture

We implement a zero-trust security model where no user or system is trusted by default. Every request is authenticated, authorized, and encrypted regardless of origin.

Firm-Level Data Isolation

Each firm's data is processed in isolated environments with strict access controls. Deal data, investor information, and communications are cryptographically separated and cannot be accessed by other organizations.

Deterministic State Management

Our system maintains a complete audit trail of all state transitions. Every action is logged, timestamped, and immutable, ensuring full transparency and accountability throughout the capital raise process.

Encryption Standards

We employ industry-leading encryption standards to protect your data at every stage of its lifecycle.

Data at Rest

AES-256 encryption

Hardware security modules (HSM)

Encrypted database storage

Secure key management

Data in Transit

TLS 1.3 protocol

Perfect forward secrecy

Certificate pinning

Encrypted API communications

Key Management

All encryption keys are managed through a secure key management system with the following features:

  • • Automatic key rotation every 90 days
  • • Hardware-backed key storage
  • • Multi-party authorization for key access
  • • Comprehensive audit logging
  • • Secure key backup and recovery procedures

Access Control

We implement strict access control measures to ensure that only authorized individuals can access sensitive systems and data.

Multi-Factor Authentication (MFA)

All user accounts and administrative access require multi-factor authentication. We support hardware tokens, authenticator apps, and biometric authentication.

Role-Based Access Control (RBAC)

Access permissions are granted based on the principle of least privilege. Users receive only the minimum access necessary to perform their duties.

Session Management

  • • Automatic session timeout after inactivity
  • • Secure session token generation
  • • Session binding to device and IP
  • • Immediate session revocation on logout

Infrastructure Security

Our infrastructure is hosted in secure, certified data centers with multiple layers of physical and digital security.

Cloud Infrastructure

We utilize enterprise-grade cloud infrastructure with:

  • • Certified secure data centers
  • • Geographic redundancy for data resilience
  • • DDoS protection and mitigation
  • • Regular security patching and updates

Email Security

Our email infrastructure includes:

  • • SPF, DKIM, and DMARC authentication
  • • Secure token-based magic link authentication
  • • Encrypted email delivery and tracking
  • • Protection against phishing and spoofing

Application Security

We follow secure development practices including:

  • • Secure coding standards and code reviews
  • • Regular security testing
  • • Automated vulnerability scanning
  • • Dependency management and monitoring

Monitoring and Detection

We maintain 24/7 security monitoring to detect and respond to potential threats in real-time.

Continuous Security Monitoring

Our systems continuously monitor for:

• Unauthorized access attempts

• Unusual data access patterns

• Email security threats

• Data integrity violations

• System anomalies

• Failed authentication attempts

• Configuration changes

• API security events

Logging and Audit Trails

All system activities are logged and retained for forensic analysis. Logs include user actions, system events, and security-related activities. Logs are encrypted, tamper-proof, and retained for a minimum of 1 year.

Threat Intelligence

We integrate threat intelligence feeds to stay informed about emerging threats and vulnerabilities, allowing us to proactively protect our systems.

Incident Response

We maintain a comprehensive incident response plan to quickly identify, contain, and remediate security incidents.

Incident Response Process

1

Detection

Automated systems and SOC analysts identify potential security incidents

2

Assessment

Incident severity is evaluated and response team is activated

3

Containment

Immediate actions taken to isolate and contain the incident

4

Eradication

Root cause is identified and eliminated from systems

5

Recovery

Systems are restored to normal operation with enhanced security

6

Post-Incident Review

Lessons learned are documented and security measures are improved

Notification

In the event of a security incident that affects customer data, we will notify affected parties within 72 hours in accordance with applicable regulations. Notifications will include details about the incident, affected data, and steps being taken to address the situation.

Compliance

Straum maintains compliance with relevant industry standards and regulations to ensure the highest level of security and privacy protection.

Financial Data Protection

We adhere to industry standards for handling sensitive financial information and investor data.

GDPR Alignment

Our practices align with GDPR requirements for data protection and privacy.

CCPA Compliance

We comply with California Consumer Privacy Act requirements for data handling and user rights.

Document Security

All legal documents and signatures are processed through certified third-party providers with industry-standard security.

Security Audits

We conduct regular security assessments to identify and address potential vulnerabilities.

Security Testing

We conduct regular security assessments to identify and address potential vulnerabilities in our systems.

Vulnerability Management

Automated vulnerability scans run continuously across our infrastructure, with critical vulnerabilities addressed promptly.

Code Reviews

All code changes undergo security review to ensure adherence to secure coding practices and industry standards.

Employee Security

Our employees are our first line of defense. We invest heavily in security training and awareness.

Background Checks

All employees undergo comprehensive background checks before being granted access to systems.

Security Training

Mandatory security awareness training is conducted during onboarding and quarterly thereafter, covering topics like phishing, social engineering, and secure coding practices.

Access Reviews

Employee access rights are reviewed quarterly to ensure they remain appropriate for their role.

Security Contact

If you have security concerns or wish to report a vulnerability, please contact our security team immediately:

info@virtue.company

We appreciate responsible disclosure and will work with security researchers to address any legitimate vulnerabilities.