Mar 5, 2010—Security Risks in the Age of Social Networking Sites

by Karen Crumbley, Product Manager

An excerpt from the Q1/2010 issue of the Gladiator newsletter, The Shield –

According to research conducted by the Pew Internet and American Life Project for 2009, 46 percent of the adult population uses some type of social networking site. Not surprisingly, there have been significant increases in the use of social networking sites among financial institutions (FIs) for marketing purposes. For example, Bank of America uses its Twitter account to respond to customer issues. If someone is “tweeting” about Bank of America, then the Customer Service department is alerted and can respond immediately. The benefit is in being proactive with customers who are unsatisfied, thus enhancing the customer’s experience. Additionally, social networking placed on FI websites allows the customers to have a convenient, direct communication line to the FI. So, when the bank wants to educate its customers or let them know about great rates or new products, they have a way to notify consumers instantly.

Unfortunately, along with the benefits associated with using today’s popular social networking sites also comes very real security risks. If your FI is considering using this communication tool for the purpose of its website, then be aware that implementing this technology should be done carefully and include an overall strategic plan. (continued)

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