Smartphone Policing at Work Poses Risks, Fallout if Done Wrong

Unauthorized messaging by employees is a growing headache for public companies who face legal and regulatory risks if communications fall outside official channels.

Companies are struggling to stay abreast of messaging among employees equipped with pocket-sized personal computers in their smartphones. Besides having to contend with encrypted apps such as WhatsApp, they face challenges around establishing clear policies and educating their employees about potential risks.

A Department of Justice crackdown on corporate control over employees’ smartphone messages, an SEC probe into use of outside messaging by asset managers and recent settlements totaling $1.8 billion affecting 11 Wall Street banks all ...