In the last few years, the U.S. Securities and Exchange Commission (SEC) has increasingly handed out fines for improper use of consumer messaging apps such as WhatsApp, iMessage, and Signal. It comes as no surprise that many prominent companies, such as JPMorgan Chase and Morgan Stanley, have received eye-watering fines for not adhering to SEC guidelines regarding the misuse of such applications.

On the 14th August 2024, the SEC announced more charges, with another two dozen firms being found guilty of violating recordkeeping provisions of the federal securities laws, with the staggering fine totaling $392.75 million due to their employees communicating on “off-channel” platforms that do not adhere to SEC guidelines.

These latest fines are regulators’ latest effort to eradicate the use of improper and non-compliant communication from employees within a business, with the fines now totaling over $2 billion in the past 18 months.

“This latest SEC fine shows that its hard stance against consumer messaging systems within financial institutes of all sizes remains. The most recent batch brings the total fines to over $2 billion in the past 18 months,” says Joe Boyle, CEO at Salt Communications. “The SEC is hammering home that insecure and non-compliant ‘open’ systems are a huge operational threat. Visibility and security remains the issue. Solutions like those provided by Salt Communications help major financial institutions avoid such fines by providing a secure and compliant ‘safe haven’ communications network. This solution enables financial organisations to share critical information securely and efficiently, wherever they are, without relying on insecure consumer messaging apps. This not only safeguards sensitive data but also ensures that institutions meet all relevant SEC regulations, providing peace of mind and bolstering trust in an increasingly complex regulatory environment.”

As the financial landscape evolves and regulatory scrutiny intensifies, financial institutions must prioritise their secure communications to protect themselves, their clients, and the integrity of the market they serve. Adopting Salt’s robust security measures not only mitigates the risk of SEC fines but also contributes to a resilient and trustworthy financial ecosystem.

The issue at hand is clear: businesses need channels of communication within their staff at all levels; however, the use of consumer messaging apps cannot provide a safe and secure platform for this. The solution, in theory, is simple: organisations need to eliminate the use of these non-compliant apps while providing their staff with a viable alternative that is safe, secure, and adheres to SEC and other financial regulations.

In response to these challenges, businesses can turn to Salt Communications, who work with financial organisations across the globe to provide them with a secure and compliant communications network. Salt’s global client base deploy our award winning system as an alternative to unsafe consumer messaging apps to ensure they have complete control over their communication channels, from user access, data retention, deployment control and even having the system branded with their own corporate branding, Salt Communications works with financial organisations globally to need to take back control and communicate with confidence. 

If you require any additional assistance, please contact our experts for more information at info@saltcommunications.com or to sign up for a free trial of Salt Communications or to speak with a member of the Salt Communications team.

Discover why financial institutions should consider Salt as a secure communications method. 

About Salt Communications 

Salt Communications is a multi-award winning cyber security company providing a fully enterprise-managed software solution giving absolute privacy in mobile communications. It is easy to deploy and uses multi-layered encryption techniques to meet the highest of security standards. Salt Communications offers ‘Peace of Mind’ for Organisations who value their privacy, by giving them complete control and secure communications, to protect their trusted relationships and stay safe. Salt Communications is headquartered in Belfast, N. Ireland, for more information visit Salt Communications.