Companies in the financial sector encounter numerous risks with weak call monitoring systems. Without standard recording, archiving, and surveillance of financial proceedings, high-risk individuals can easily take advantage of the vulnerabilities of financial institutions.
The lack of a robust mobile monitoring program can lead to illegal financial proceedings. Involvement in fraudulent activities can have detrimental effects on a company, such as damage toits reputation, loss of investors, and enforcement liability.
Damaged Reputation
When an institution is involved in a financial scandal, the first thing to go is its reputation. News travels fast, and scandals can drive potential clients away. Although some institutions are reputable enough to survive being accused of financial fraud, they can still significantly harm operations.
Loss of Investors
When financial institutions become involved in illegal financial activities, they risk not only damaging their reputations but also losing the trust and confidence of their investors. Clients will question the institution’s integrity and possibly lose faith in its ability to manage their investments effectively, resulting in a decrease in revenue.
Liability for Enforcement
The government has established strict regulations for businesses in the financial industry. This includes holding institutions accountable for having inadequate preventative measures against illicit financial transactions. If a company is allegedly involved in insider trading or market manipulation, it will be liable for enforcement when it lacks standard security systems.
How Call Monitoring Programs Prevent Risks
Call monitoring programs are designed to monitor and record phone conversations to comply with financial reputations and help prevent illegal financial activities like insider trading and market manipulation. Mobile monitoring systems provide a way to review and analyze communications between employees and clients.
One way a call monitoring program prevents insider trading is by flagging conversations that contain potentially sensitive information. For instance, the system can alert authorized personnel to prevent fraud if an employee mentions a pending merger or acquisition during a transaction.
Establishing an intensive call monitoring program includes various aspects. Learn more about them through this infographic by TeleMessage, a trusted message archiving company.
