By Each person worldwide has at least one smartphone, which allows them to perform almost all of their tasks in just a few clicks or swipes. This is especially true when we are facing the COVID-19-related health crisis.
Group chats and online message apps are becoming the most used communication method. Even businesses can use these apps to run their operations. Online messaging services are essential for market survival. They can help you reach customers, maintain operations, and keep your digital footprint stable.
Online messaging apps can result in huge financial penalties for some financial institutions and reputational harm to others, despite their many benefits. The Cartel Forex Scandal aside from WhatsApp Finra is one of the best examples to explain this situation.
Manipulation of forex rates
Over the years, several traders at banks were accused of manipulating Forex rates to benefit their financial interests. According to reports, regulators went through thousands upon thousands of chat histories to find more than 200 group chats implicated in the Forex rate-rigging scheme. Major banks carried out the act over almost a decade. Investigators took enforcement action against major banks like JPMorgan Chase and Barclays.
Traders misused some privacy features on online messaging apps. It was found that instant chat rooms which only lasted a few minutes were used extensively. This feature allowed traders to terminate any exchange rate conversation. Others used permanent group chats, email, and telephones.
Mobile archiving solution for controlling market manipulation
The Cartel Forex Scandal created a great deal of noise in financial markets. Firms need to be more vigilant in monitoring work-related communications within their companies. A company can bring an electronic archive system into their business. This will enable banks to detect potential misuses of digital communication platforms and prevent future scandals. Instant message archiving records voice calls, text messages, and stores the data behind tight security. It allows businesses to comply with any regulatory agency’s rules.
To learn more about the Cartel Forex scandal, you can read this infographic from TeleMessage.
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