• Thursday, March 28, 2024
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Embracing A Virtual World: Risk Factor

Embracing A Virtual World: Risk Factor

The year2020 will often be referred to as the year the world went virtual. Businesses, conferences, schools and many more have turned to virtual technology as an alternative to physical events and meetings with many projecting that this may represent the new normal. The impact of COVID -19 is unprecedented, with several industries infusing the use of technology into activities in order to maintain operations and ensure delivery of value.

The use of virtual platforms has cut across diverse facets of life with the system being adopted by businesses, governments, courts of law, schools and religious bodies, etc. Arguably, virtual technology platforms are the biggest winners amid this virtual surge. A perfect example is the meteoric rise of premier video conferencing application, Zoom Technology’s (‘’Zoom’’) market capitalisation to USD 40 Billion in a matter of months. Apptopia (software/ Application tracking firm) reported that on March 23, 2020, Zoom was downloaded 2.13 million times worldwide that day alone. This is far past the 2.04 million downloads the day before. Two months prior, the app had just under 56,000 global downloads in a day.

SEE ALSO: The Companies and Allied Matters Act, 2020 and its Implication for Good Corporate Governance in Nigeria

Whilst the virtual platforms and mechanisms have become very expedient; it is also imperative that they are used carefully in order to avoid risks and possible legal issues that may arise from their use. These risks and possible solutions to avoiding or mitigating the same will be briefly examined below:

1. Data Privacy and Security Issues
The statement ‘the world is a global village’ cannot be overemphasised. The world is truly interconnected, thanks to technology and data. The possibilities available when data is made accessible is insurmountable. Nevertheless, with access to data comes the need to safeguard against the misuse of data and to ensure sensitive data is not abused. There are recent case studies that underscore the need to safeguard and protect data:
1.1. The Zoom Example
The Zoom application, as earlier referenced in this paper, seeks to provide users with an immersive virtual experience with meetings and discussions held on the application. However, there have been allegations that the application has been hacked severally with users facing potential loss or misuse of data. As reported by Bloomberg, The company is accused of hiding flaws in its software system that potentially exposed it to hackers. It is further accused of sharing user data with third party sites such as Linkedin and Facebook. Zoom’s Chief Executive Officer Eric Yuan had admitted and tendered an apology for the lapses which he acknowledged in a blog post stating that the company had fallen short of expectations over privacy and security. Researchers have also blamed weak encryption technology as the reason for the rise in hacking complaints often referred to as “Zoombombing”, where uninvited trolls gain access to a video conference to harass other participants. Recordings of meetings have also shown up on public internet servers.

Notably, countries such as Taiwan and major companies such as Elon Musk’s Space X have banned the use of Zoom on the basis of its weak policy on data privacy and security. This is coming as the company faces an onslaught of suits over data breach, such as Todd Hurvitz v. Zoom Video CommunicationsIncandGens v. Zoom Video Communications Inc.
Firms and Businesses run on customer or consumer data. Accordingly, privacy and security must be guaranteed. Making use of virtual platforms exposes businesses, firms and corporations to a myriad of legal issues relating to data privacy and breach of same. Employees on an average workday have unfettered access over this information and data, policies and mechanisms must then be put in place to ensure a safe virtual working environment.

2. Recording of Meetings
Meetings may be recorded for various reasons; it may be to take down minutes or have a sort of record of matters discussed on the platform. It is advised that prior consent be gotten from participants before proceeding with recording the meeting. This may be tough in practice to adhere to as setting up a virtual meeting is often an easy task and to record entails just clicking a button on the platform. However, it is advised that explicit and direct consent be sought and granted before the meeting is recorded. This ensures the safety of sensitive matters that may be discussed in such meetings.
Another case study is a suit filed against Zoom: Buxbaumet al.v. Zoom Video Communications Inc where the Plaintiffs allege that although Zoom claims not to record meetings or retain recordings of meetings, it, however, failed to install an end to end encryption system that protects users from unauthorised access to videos or call conferences made on the platform.

3. Growth of Cyber Criminal Activities
The Federal Government of Nigeria reported that the country had lost about $800 million to cybercriminal activities. The Chartered Institute of Forensic and Investigative Professionals of Nigeria (CIFION) also revealed that within ten years, Nigeria had lost NGN5.5 Trillion to cybercriminals. It is thus clear that the situation calls for emergency action that would save the country from more potential losses. The shift/ reliance on virtual platforms would only excavate some of these already existent issues, thereby exposing users to a large well of losses. It is trite that as these platforms enjoy more usage, users also explore every possible means of safeguarding themselves and their businesses.
Below are some of these mechanisms which may be put in place to ensure a safe virtual working space.

a. In the case of virtual reality, whilst there exists a data protection regulation system, it would seem that same does not envisage some of the peculiar issues that emerge from the use of virtual reality. Accordingly, a holistic appraisal of the existent regulations so as to extend their coverage to virtual reality specific issues is advised.

b. It is suggested that during virtual meetings or proceedings, participants’ virtual platforms are accounted for through the use of well-known names and recognisable profiles;

c. Enablement of a passworded system that must be used to gain access to these meetings asides from the default links;

d. Update of privacy and security policies to cater to contemporary issues/ challenges;

e. Enablement of a Two-Factor verification system on significant applications used by participants and adoption of Virtual Private Networks (VPN), to keep web browsing secure; and

f. Activation of security systems using encryption, passwords, network firewalls, as well as restriction of the use of personal devices in accessing firm or company data/information.

Moving from highlighting the possible risks in building a virtual world, there are also inherent benefits in exploring this shift.
1. Lower Cost of Operation
Companies and business owners who have transitioned to virtual experiences are recording lower cost in operations. Less need to make use of resources seeing as most members of staff are working remotely. The need to have a physical space may also be done away with seeing as staff are all working remotely. All these signify a significant drop in operating costs and encourages a utility/ focus spending method. Why have a fully functional physical space with utility bills and rent when all that cost could be reduced by implementing a virtual remote working experience.

2. Work/ Life Balance
Working remotely using virtual platforms also encourages a healthier work/ life balance. Whereas staff may spend long hours in the office and may not be productive. Going virtual enables staff to plan and structure themselves to meet up with work obligations while also affording them the time to satisfy personal life targets. The result may be an increased output and value delivery for the company/ business.

In conclusion, there are numerous factors to consider in this new age of virtual meetings, remote working and virtual reality, some of which have been elucidated in this article. Technology plays a significant role in global development, and in the wake of the outbreak of the coronavirus, it has once again proven its indispensability with its far-reaching effects on several industries, countries and institutions. However, to successfully enjoy its benefits, strict measures must be put in place to ensure there are no abuses and data and privacy are protected. Some of these measures are outlined above. It is envisaged that strict adherence to them may prevent and/ or contain possible data security/ privacy breaches, thereby helping parties circumvent liabilities as much as possible.

Authored by Kennethcollins Ajagu an Associate at Kenna Partners