Social media platforms such as Facebook, Instagram, LinkedIn, Twitter, and YouTube, have transformed customer management and corporate communications; they enable businesses to recruit new employees and directly respond to customer feedback.
Unfortunately, greater accessibility entails increased risks.
Here are the top 3 Social Media Risks for Businesses:
1 – Accidental Disclosure of Confidential Information
A corporate social media presence increases the susceptibility of businesses to the inappropriate release, leakage, or theft of network data (such as IP addresses) and other confidential information, such as client credentials and financial data.
Furthermore, employees can share information about business activities or individual employee practices, set unrealistic product or customer service expectations, and display information intended for internal or personal use. These practices can detriment employee privacy and safety, detract from meaningful marketing content, harm your business’ reputation, and grant cyber criminals access to your technology systems.
2 – Identity Theft
Social Media increases the risk of identity theft. Fraudulent third parties can use unauthorized names and logos and impersonate business personnel to hijack your company’s brand, obtain prospective clients, sell counterfeit products and services, and steal client’s personal information.
Similarly, scammers impersonating clients or other businesses can steal employee and business information, and instigate fraudulent transactions.
3 – Violating Laws and Regulations
Social media perpetuates the release of information that violates laws and regulations. Examples include the release of employment and data security, trademark and copyright infringement, and violations of privacy rights, retention regulations, and e-discovery requirements.
Additionally, employees should avoid commenting on company performance; the release of such metrics could impact stock price, counter the insider trading “quiet period,” or violate other securities laws.
In addition to enforcing “best practices,” and educating employees about the risks associated with social media, companies should implement crisis response plans. Get in touch with ASG for information about how to manage social media security, and protect your business from internal and external threats.