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Cybersecurity Research
  1. V. THE FUTURE IMPACT OF COVID-19 ON THE BANKING INDUSTRY

V. THE FUTURE IMPACT OF COVID-19 ON THE BANKING INDUSTRY

The increased rate of cybercrime coincides with a time in which there is a greater push for employees to work remotely.215 In fact, a group of U.S. senators stated: “Telework protects not only federal employees from the spread of COVID-19, but also their families and the communities across the country in which they work.”216 This sentiment proposes a federal stamp of approval on a growing practice: the maximization of telework.217 This was arguably the first time that telework is lauded not just because it is convenient but also because it is a good public health safety measure.218 The shift to remote work—for both public and private sectors—has been well received.219 Survey data reports that 98% of workers would like to work-from-home permanently.220 Companies including Twitter, Slack, and Square have already announced a work-from-home forever option for their employees.221 Facebook expects half of its 48,000 employees to workfrom-home throughout the next ten years.222 Additionally, several

215. See Letter from Chris Van Hollen to Senate Majority Leader Mitch McConnell and Minority Leader Charles Schumer, (July 31, 2020). https://www.vanhollen.senate.gov/imo/media/doc/Letter%20to%20Leadership%20on%20T elework%20Provision%20in%20C4%20Final%20version.pdf [https://perma.cc/7XQRM6LQ] (discussing the need to keep employees at home during the pandemic).

216. *Id. *

217. See id. (urging the Senate to maximize telework in order to stop the spread of COVID19).

218. See id. (discussing how, in light of an increasing number of COVID-19 cases, federal agency employees must set a positive example for other workers by taking precautionary measures like working remotely).

219. See Nick Routley, 6 Charts that Show That Employers and Employees Really Think About Remote Working, WORLD ECON. F. (June 3, 2020), https://www.weforum.org/agenda/2020/06/coronavirus-covid19-remote-working-officeemployees-employers [https://perma.cc/GMU8-TWRZ] (examining attitudes towards remote work during the pandemic, and how 98% of those surveyed would prefer to still be able to work-from-home post-pandemic).

220. *See id. *(reporting that the 98% of those surveyed said the top benefits of workingfrom-home include, but are note limited to, more flexible schedules, the ability to work from any location, being able to spend more time with family, and the lack of a commute).

221.* See* Dana Brownlee, Twitter, Square Announce Work From Home Forever Option: What Are The Risks? FORBES (May 18, 2020, 8:08 PM), https://www.forbes.com/sites/danabrownlee/2020/05/18/twitter-square-announce-workfrom-home-forever-optionwhat-are-the-risks/#62c9f2092565 [https://perma.cc/XJ34-CZ7A] (discussing how companies are changing their telework policies in light of the sure in telework during the pandemic).

222. See Shannon Bond, Facebook Expects Half Its Employees to Work Remotely Permanently, NPR (May 21, 2020, 5:15 PM), https://www.npr.org/sections/coronavirus-live-

companies like Shopify and Box anticipate having permanent workfrom-home options in the future.223 Remote work is projected to stay in the post-pandemic world.224

However, the reality of the transition to remote work during the pandemic is less than ideal.225 Scores of financial institutions were ill equipped to make the transition to remote work.226 Many information technology (“IT”) departments were not prepared to handle the substantial increase in remote employees and third-party vendors.227 Employees were not prepared for the transition either.228 A survey of remote workers shows that 72% are not working from a dedicated home office space.229 Instead, their living rooms and bedrooms serve as their “office.”230 Moreover, 40% of remote workers are not even working from an actual desk.231

updates/2020/05/21/860382831/facebook-expects-half-its-employees-to-work-remotelyforever [https://perma.cc/KP5F-LL42] (detailing new work-from-home policies that companies are developing in light of COVID-19).

223 See Rob McLean, These Companies Plan to Make Working From Home the New Normal. As in Forever, CNN BUS., https://www.cnn.com/2020/05/22/tech/work-from-homecompanies/index.html [https://perma.cc/F4J4-2QHV] (last updated June 25, 2020) (discussing how different companies are changing work-from-home policies, and the possibility that working from home may become a permanent fixture post-pandemic).

224. See Remote Work in 2021: Cybersecurity Grows in Importance, supra note 185 (“[S]urvey results show that even as organizations are preparing for a return to physical offices in 2021, remote and home-office work is likely here to stay for the long-term for a good portion of the employees.”).

225.* See* Evan Sparks, The Telework-Ready Bank, A.B.A. BANKING J. (Apr. 3, 2020), https://bankingjournal.aba.com/2020/04/the-telework-ready-bank/ [https://perma.cc/LNT6- YPCE] (discussing considerations banks should take into account as they transition to remote work).

226. See Ann Marie Uetz et al., Managing the Commercial Impact of the Coronavirus: Implications for Remote Working and Data Security, NAT’L L. REV. (Mar. 12, 2020), https://www.natlawreview.com/article/managing-commercial-impact-coronavirusimplications-remote-working-and-data-security [https://perma.cc/BF3Y-WWQV] (providing guidance on how companies can manage a remote workforce).

227. See id. (stating that the unique circumstances of the pandemic are not conditions that most IT departments are prepared to deal with).

228. See Chris Westfall, Statistics Show Remote Workers Are Frustrated, Many Still Unprepared for Working From Home, FORBES (Aug. 25, 2020, 3:40 PM), https://www.forbes.com/sites/chriswestfall/2020/08/25/statistics-show-remote-workers-arefrustrated-many-still-unprepared-for-working-from-home/#323fb2f548b3 [https://perma.cc/LY3B-Q8WR] (using statistical data from the company Nulab to show how many employees were not prepared for the shift to remote work).

229. *Id. *

230. Id.

231. Id.

People change their behaviors when they transition from an office environment to a home environment.232 Therefore, the key concern with a surge in telework is maintaining a safe cybersecurity environment.233 The risk of data harms stems not only from cybercriminals but also from employees themselves.234 A study conducted by the security firm Tessian found that 48% of employees are less likely to follow safe data practices at home.235 An alarming 52% of those surveyed said they believed they could get away with riskier behavior,236 such as using public hotspots and unsecure networks.237

These risks associated with unsupervised telework include, but are not limited to, unsecure networks, phishing attacks, computer sharing, and insecure devices.238 Employees may have weaker protocols in their homes, like using WEP (the weakest protocol and highly vulnerable to attacks) instead of WPA-2 (the most secure protocol) in securing their Wi-Fi networks.239 If a remote workforce is to be a permanent

232. See Sparks, supra note 225 (discussing how the shift in behavior when transitioning to a work-from-home environment “creates an opportunity for threat actors” to hack into computer systems).

233. See id. (discussing how banks should have cybersecurity measures in place and should consider novel cybersecurity issues while employees work from home).

234. See Aman Kidwai,* Employees Working From Home May Present a Threat to Cybersecurity*, HR DIVE (May 28, 2020), https://www.hrdive.com/news/employees-workingfrom-home-may-present-a-threat-to-cybersecurity/578761/ [https://perma.cc/4HMV-RWCS] (examining how employees change behaviors when working remotely, such as becoming lax on proper cybersecurity practices).

235. Half of Employees Abandon Safe Data Practices When Working Remotely, According to New Data, REALWIRE (May 28, 2020), https://www.realwire.com/releases/Half-ofEmployees-Abandon-Safe-Data-Practices-When-Working-Remotely [https://perma.cc/3VUT-UCY9] [hereinafter Half of Employees Abandon Safe Data Practices].

236. Id.

237. See Jason Glassberg, Are Remote Workers a Security Risk to Your Business? THE BUS. J. (Mar. 19, 2020, 3:05 AM), https://www.bizjournals.com/bizjournals/howto/technology/2020/03/are-remote-workers-a-security-risk-to-your.html [https://perma.cc/67Z6-22MD] (examining cyber risks involved with telecommuting like insecure Wi-Fi networks, vulnerable software, public hotspots, and the surge in email scams).

238. Nicky Daly, 7 Tips for Avoiding Remote Work Security Risks, WRIKE: REMOTE WORKING (Apr. 6, 2020), https://www.wrike.com/blog/tips-avoid-remote-work-securityrisks/ [https://perma.cc/F3YG-A9PC] (discussing the cybersecurity risks associated with remote work).

239. See Carrie Rubinstein, Beware: Remote Work Involves These 3 Cybersecurity Risks, FORBES (Apr. 10, 2020, 2:07 PM), https://www.forbes.com/sites/carrierubinstein/2020/04/10/beware-remote-work-involvesthese-3-cyber-security-risks/#29752e6d61c4 [https://perma.cc/X3PM-HQ65] (listing three hazards of remote work: home Wi-Fi security, phishing scams, and insecure passwords).

consequence of the COVID pandemic, then cybersecurity protocols for bank employees must be revised and improved.

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