Financial institutions have been using instant message solutions to connect with their customers. Smartphones, chat groups, and online messaging apps have become more significant in building relationships with clients. While these instruments provide business advantages, financial institutions still experience drawbacks in maintaining market stability and integrity. Many traders are taking advantage of these to execute illegal activities.
Online messaging platforms can cause several banks to pay excessive fines for not adhering to mobile compliance regulations. One example is when the Securities and Exchange Commission and Commodity Futures Trading Commission fined JPMorgan Chase & Co for non-compliance with record-keeping rules concerning WhatsApp messages.
The Cartel Forex Scandal
The Cartel Forex Scandal is one of the most significant scandals involving banks and reputational damages. Traders from different banks were accused of leveraging online chat groups for Forex rates manipulation. Investigators took action to discover chat records and rooms involving Forex rate-rigging cases.
Throughout this incident, the traders extensively used the chat groups’ secrecy capabilities. For instance, it has been found that some of the instant chat rooms used by traders to interact only lasted a few hours, allowing dealers to trash price rigging chats within such chat groups.
Due to the financial industry’s increasing financial crimes and manipulation, it is essential to invest in mobile archiving or call archiving to secure your messages and important data. One of the most critical qualities of archiving systems is their ability to segregate professional and personal text messages while maintaining the privacy of private texts.
The Cartel Forex Scandal is a warning to all financial organizations that communicate with clients via internet chat rooms and other messaging platforms. Firms must exercise vigilance over their use within the organization by monitoring work-related communications.
Further, it demonstrates the need for a proper solution for monitoring and archiving electronic conversations to assist banks in identifying potential misuse of digital communication products and proactively avoid future scandals.
Here is an infographic from TeleMessage for more information.