The Risks of Using Consumer Messaging Apps in Regulated Industries

Consumer messaging apps such as WhatsApp, iMessage, and standard SMS are popular because they are convenient, fast, and familiar. In regulated industries like healthcare, financial services, and legal, these apps might seem like an easy way to communicate with clients or colleagues. However, they pose significant risks that can lead to regulatory violations, financial penalties, and loss of trust.

Regulated industries are subject to strict rules regarding how sensitive information is handled, transmitted, and stored. In healthcare, HIPAA requires that all protected health information be secured and accessible only to authorized parties. In financial services, SEC and FINRA regulations require the retention and supervision of business communications. Consumer apps are not designed to meet these requirements.

One major risk is the lack of proper archiving. Consumer messaging apps do not automatically store conversations in a compliant, tamper-proof format that can be accessed for audits or investigations. Without this capability, a business cannot prove that it has met its legal obligations to retain communications.

Another problem is the lack of administrative control. In regulated industries, organizations must be able to monitor and manage communication channels. Consumer apps do not provide compliance officers with access to message logs or the ability to control how employees use the platform. This makes it difficult to enforce policies and prevent off-channel communication.

Security is also a concern. While some consumer apps offer encryption, they often lack the enterprise-grade protections needed for regulated data. Even with encryption, messages stored on personal devices can be accessed by unauthorized individuals if the device is lost, stolen, or compromised.

Regulators have taken enforcement action against many firms for the use of unapproved messaging apps. In recent years, billions of dollars in fines have been issued for failing to supervise and retain mobile communications.

The safest approach for regulated industries is to use a secure communication platform that meets all applicable regulations. Solutions like iPlum provide encrypted messaging, automatic archiving, administrative oversight, and audit-ready data storage. This ensures that businesses can communicate efficiently while maintaining full compliance and avoiding costly penalties.