Security scans of a WeWork building in New York’s Financial
District uncovered security vulnerabilities in the company’s WiFi network that
exposed financial records and devices of companies in the building.

A tenant moving into the building in 2015 began scanning the
facilities to ensure his company wouldn’t be vulnerable to attack, according a
CNET report,
and discovered that the shared workspace company’s network leaked data like a
sieve. His disclosure to WeWork management was shrugged off, the tenant, Teemu
Airamo said.

“I said, ‘Did you know
that we can actually see all this?’ The answer was, ‘yeah, eh,’” the
report cited Airamo as saying. He has continued to conduct regular scans and
CNET said a review of the findings showed 658 exposed devices leaking out
information.

“Investors now factor cybersecurity in both
the valuation and due diligence of pre-IPO companies like WeWork. WeWork’s
inadequate measures toward data protection exposes them to more than just risk
of a data breach, but it also has the potential to devalue it in this critical
pre-IPO stage,” said Mike O’Malley, vice president of strategy at Radware. 
“Further, it has the potential to increase the risk exposure for every company
that operates from a WeWork facility— especially the tech startups that are
managing highly sensitive IP and customer data.”