How Can a Financial Institution Protect Itself From Legal Exposure Related to the Use of Social Media?

Social media can be a great way for professionals to network with colleagues and share health information, but it comes with potential risks. Financial Institutions should take extra precautions to comply with numerous laws affecting their industry. Faegre Baker Daniels partners Alex Denny and Stacey Smiricky authored an article for the Spring edition of inCompliance, in which they explained the evolution of social media and legal issues that have arisen from the widespread use of social media.

Their article offered practical steps financial institutions can take to protect themselves from legal fallout related to social media, and explained recommendations that the Federal Financial Institutions Examination Council (FFIEC) have outlined as a guide for financial institutions to address social media use. They contend that while financial institutions would be wise to review the FFIEC's recommendations, employers should be proactive with their employees by offering training and education on the impact social media can have on business.