Practicing Safe Social Media

It is mandatory that financial institutions develop relationships with consumers. However, it is of greater important that these institutions keep consumers’ information safe. Recently, the Federal Financial Institutions Examination Council (FFIEC) declared certain risks associated with the use of social media. They published a guide to social media platforms, which explains that the more platforms an institution is participating on, the more they need to access their risk.

The biggest concern the FFIEC has when it comes to financial institution’s online presence is privacy and criminals. Although all industries worry about this, financial institutions have greater responsibility due to the fact that they are dealing with consumers finances. They are at risk for things such as loan loss, physical theft, and identity theft. The FFIEC says, “Financial institutions should consider the use of social media monitoring tools and techniques to identify heightened risk, and respond appropriately.”

In the video below, Credit Suisse, a financial services holding company located in Switzerland, explains how they are limited on social media platforms because of security issues. Watch 2:41 to 3:25. 

While the FFIEC recommends that the financial industry to take responsibility for these dangers, Fox Business recently published an article that advices consumers to take precautions themselves. They report that Ariel Sanchez of IOActive, a blog about online security,  did a test with banking apps and found that 90% contained malicious links that could exploit a consumers banking information. While there are steps that financial institutions can take to make sure their apps are more secure, there is no way to make an app 100% safe. Sanchez gives basic tips on how consumers can be more active in keeping their banking information safe, such as password protecting your phone.

The FFIEC does not discourage financial institutions from using social media platforms, or deny that they can give them leverage if used properly and safely. In one section of their guide published, the FFIEC warns financial institutions that consumers will still talk about you on social media platforms even if you are not present. 

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4 thoughts on “Practicing Safe Social Media

  1. I think this is an interesting topic for you to cover because like this first blog says the financial industry has to be so wary of fraud and crime in general. I use two different bank apps and they are so convenient! I love them, but people are always warning me about them. Knock on wood, I haven’t had any trouble with them thus far. I did have a teacher last semester that was so against any bank apps. He said once he was at a conference and the speaker actually hacked someone’s account to show the audience how easy it was and why they shouldn’t use the apps!

  2. I can’t get over the statistic “that 90% contained malicious links that could exploit a consumers banking information.” This makes it hard for banks to forge credibility with their customers due to this lack of security in technology. I have USAA and use my online banking application constantly. It is so easy to deposit a check directly from my phone to my bank account and I have never had a problem with security issues. However, after reading your post I am definitely going to be more skeptical and be sure that my information is safe and secured.

  3. Stephanie Gross says:

    This blog post is so reassuring! I think security is 100% when it comes to something like this, and although everyone loves the quirky twitter account- securing your assets is not something you want to be taken lightly. Recently, one of my family friends had her credit cards stolen at the mall and it took so much time and energy to get it back. Something like that changes you forever too, because it makes you over cautious, lose trust in the store and all other stores, it hurts the brands reputation in your mind (no matter whose fault it was), and it even has implications when you’re trying to fly! Knowing that links aren’t completely safe after what she’s been through I will definitely think twice about my online activity.

  4. Since social media has evolved, privacy and security have become huge issues, and they are just getting bigger. It is so important for the consumer to have complete trust in the corporation, ESPECIALLY their bank. If the constituent does not completely trust the bank then they will be less willing to give their information, and it will change the brand’s reputation in the consumer’s mind that they cannot be trusted as easily. This post will definitely make me more cautious about my online banking activity!

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