Every person on the planet has a smartphone that allows them to do most things in a matter of seconds. This is especially true in the current COVID-19 epidemic, which has created a health crisis.
Online messaging apps and group chats have been the most popular communication methods. Businesses are also using these platforms to communicate with customers and keep them informed. Online messaging services play an important role in maintaining market survival, from operations to reaching customers to maintaining a stable digital presence.
Online messaging apps can cause financial penalties and reputational damage to financial institutions despite its many advantages. This is best illustrated by the Cartel Forex Scandal and the subsequent call for SMS archiving regulations like Verizon sms archiving.
How to manipulate forex rates?
Over many years, traders from multiple banks were accused of manipulating Forex rates to their financial benefit. According to news reports, regulators analyzed thousands of chat history and found more than 200 chats involved in the Forex rate-rigging scam. This act was also implicated in major banks for nearly a decade. Enforcement actions have been taken against large banks such as JPMorgan Chase, Barclays and Citigroup.
Online messaging apps had privacy settings that traders used to abuse. It was discovered that traders widely used instant chat rooms that lasted only for a few hours. This allowed traders to end all exchange rate conversations. They also used permanent group chats and other messaging software such as email and telephones.
Mobile archiving to control the manipulation
The Cartel Forex Scandal caused a lot of noise in the financial markets. Therefore, companies need to be more vigilant about monitoring their work-related communications. An electronic archiving system is one of the best ways to help your company. This will allow banks to avoid future scandals by identifying potential misuse of digital communication platforms. Mobile archiving like Verizon text archiving captures voice calls, texts messages and stores data behind tight security. This allows any business to adhere to any regulatory rules.
To learn more about the Cartel Forex scandal, you can read this infographic from TeleMessage.