Everyone across the globe has one smartphone of their own, which enables them to do almost everything within a few clicks and swipes. This is especially true during the current health crisis we face under the COVID-19 pandemic.
Group chats and online messaging apps have become the most preferred day-to-day communication method, and even businesses are now running with the help of these platforms. From maintaining operations to reaching out to customers and keeping a stable digital presence, online messaging services now play a vital role in market survival.
Online messaging apps can bring massive financial penalties and reputational damages to some financial institutions despite its numerous advantages. One of the best examples to explain this situation is the Cartel Forex Scandal and the call for sms archiving regulations that followed it.
Online group chats to manipulate forex rates
For many years, traders from several banks were accused of using online chat groups to manipulate Forex rates for their financial interests. According to the news reports, regulatory bodies went through thousands of chat histories and discovered more than 200 group chats that were involved in the Forex rate-rigging scandal. It was also revealed that major banks were involved in this act for almost a decade. Investigators have taken enforcement actions against big banks like JPMorgan Chase, Barclays, and Citigroup.
Traders abused some privacy features of online messaging apps, and it was revealed that instant chat rooms that only lasted for a few hours were extensively utilized. This feature enabled traders to get rid of any conversation about the exchange rate. Some also used permanent group chats, other messaging software, email, and telephones.
How mobile archiving solutions help combat market manipulations?
The Cartel Forex Scandal made a huge noise in the financial market; thus, firms need to be more vigilant in monitoring their company’s work-related communications. One of the best solutions is bringing an electronic archiving system to their firm. This will help any bank to identify potential misuse of digital communication platforms and avoid scandals in the future. Financial regulation text message archiving captures voice calls, text messages and stores captured data behind tight security, allowing any business to comply to rules of any regulatory body.
To learn more about the Cartel Forex scandal, you can read this infographic from TeleMessage.