Thursday, May 18, 2017

3 risks associated with text messaging



Let’s face it, texting is simple, concise and compatible with virtually every mobile device, operating system and wireless carrier. This makes it extremely accessible when an employee wants to communicate with their colleagues, customers, or prospects in a time-crunched, connected society.

In fact, according to the Pew Research Center, 97% of Americans who own a smartphone use it to send or receive text messages, demonstrating that mobile messaging is one of the most widely used features. However, even though texting is easy, reliable and intuitive, if it’s used for official business communications, it can create tremendous risk for a company.

Text messages can be problematic


When you think of the countless regulatory, legal and general risk and brand management challenges that companies must manage today, you might think email and other ‘official’ communications on social media accounts and corporate websites are the only content types that need to be archived or supervised. Nevertheless, text messages must be considered too because in many instances they are used to conduct company business. Sending text messages between mobile devices is now one of the key ways that employees connect with each other and customers, and these records need to be maintained for completeness.

One alarming thing is that companies don’t give text messages the same level of recordkeeping attention they give other forms of digital records. Many don’t have an archiving solution in place for the retention and oversight of text messages, which causes problems and significant risk when facing a regulatory examination, open records request, an investigation, e-discovery event or litigation.

Compliance, legal, IT and risk and reputation professionals across a variety of litigious and regulated industries are now realizing that proactively archiving text messages is necessary to alleviate anxiousness about risks arising from their records retention and oversight practices not keeping up as employee use increases. They need to meet the challenge of accurately identifying specific sources of additional risk with this form of communication as it gets leveraged by employees within their business. Text messaging without proper governance is a major gap that can no longer be ignored.
http://www.vectramind.com

The following circumstances have organizations worried about recordkeeping challenges surrounding text messages:


• Text messages must be kept in a searchable format that cannot be tampered with, destroyed, or otherwise disposed of by anyone on purpose, or accidentally. Text messages must also be produced quickly for e-discovery, public records requests, and regulatory examinations.

• A company may operate a tremendous number of phones through contracts with one or more carriers, and erroneously assume text records are kept by carriers. However, carriers don’t keep text messages for very long, and they aren’t obliged to provide records of them, either. The responsibility for retaining and producing requested text messages lies with the organization that creates the records.

• Organizations can no longer say ‘we didn’t know’ as an excuse to avoid archiving and oversight of text messages. Several well-publicized cases involving text business messages that have been lost, altered, or mishandled in the public sector, financial services, and other industries have alerted us all to the fact that these types of messages must have oversight. Companies that aren’t yet retaining text messages will find they have plenty of technology options to help them start.

Following email and social media, SMS/text messaging is perceived as the next source of the most compliance risk by compliance professionals in the financial services industry. The Smarsh 2016 Electronic Communications Compliance Survey Report revealed that when SMS/text messaging is allowed for business communications, only 32% of firms said they have an archiving/ supervision solution in place. In addition, nearly 40% of respondents said they have no or minimal confidence in their effectiveness to prohibit the use of text messaging.

The three business risks of text messaging


Now that we have discussed the circumstances that have organizations worried about text message recordkeeping challenges, let’s take a closer look at risks, and the potential impact they can have on a business:

Legal risk


Text messages can also be requested as part of an e-discovery or litigation event, since texts are often considered relevant electronically stored information (ESI) within an organization. Many courts compel the production of texts in civil litigation, if a mobile device is believed to possess relevant text messages.

While other forms of electronic communication, including email, are relatively straightforward to collect, archive, and extract, text is different. Companies must now figure out how to collect and preserve data from numerous devices, operating systems, and device ownership scenarios. It does not matter if an employee uses a corporate-issued device, a personally owned device, or a combination of the two for business-related texts. All devices are fair game for discovery in litigation if they contain relevant business communications.

If a company’s legal team cannot find and produce text data in real-time, and respond quickly and completely when asked to search and produce specific text messages for discovery events and litigation, the organization may face legal consequences related to data spoliation, missing records, or failure to produce requested data—not to mention high legal fees.

Reputational risk


The use of text messaging without the proper monitoring protections in place can also leave a company susceptible to brand problems. Most businesses know the importance of brand reputation, since those with a strong track record tend to attract the best employee talent, and are perceived as providing more value to customers. Customers may also be more loyal and likely to recommend a company if it has a trusted reputation.

The supervision of electronic communications is critical for companies that want to find and mitigate any potential reputation risks, even if they aren’t directly related to compliance or legal issues. Emails, social media accounts and corporate websites are often monitored, but text messages must be brought into this perimeter to further reduce risk. Currently, most companies do not monitor business text messages sent and received by their employees.

When a company manages its brand by monitoring text messages and other electronic communications on a regular basis, steps can be taken to quickly assess potential threats, and mitigate actual problems when they occur.

Regulation risk


In highly regulated industries, text communications need to be retained and supervised. For instance, financial services firms are required by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) to archive and supervise electronic communications used for business purposes, including text messages—and recent surveys show firms lack confidence that they can meet those requirements.

Similarly, state governments have seen recent rulings that reinforce how text messages are classified as business records. Essentially, any highly-regulated industry that has recordkeeping requirements for business communication must archive electronic messages, no matter what platform they are on—and that includes mobile devices.


Don’t get left behind


Archiving, monitoring and producing text message data needs to become a core part of your overall electronic communications risk-based surveillance preparedness. Organizations of all sizes need to put the right policies in place, and implement automated text archiving and supervision as soon as possible—before it’s too late.

An important component of the chosen solution is the ability to archive the text messages alongside all your other electronic communications content — including email, social media, websites, instant messaging and collaboration platforms — to give compliance, legal, and risk and reputation professionals the ability to supervise and produce these records in one place, with a common user and administration interface. When a company has access to these content types with a single comprehensive archiving solution, conversations can be monitored from a broader and more holistic perspective. For instance, conversation threads can be followed easily when a discussion starts on social media, moves to email, and concludes in text messages.

Businesses that recognize the benefits of comprehensive archiving will reap the rewards almost immediately when they implement it by allowing their employees to take full advantage of the productivity that text messaging provides while staying compliant and managing the risk out of it. Others that leave text messages out of their electronic communications compliance strategy, or implement multiple point products to try and address it, will lag and be playing the odds – at a time when compliance examinations, litigation procedures and the importance of brand reputation and risk management are more central than ever to business success.

Source


EmoticonEmoticon