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Social Media and Security: Mistakes that Can Be Costly
Companies are increasingly adopting social strategies, particularly for marketing their companies and brand and connecting with customers. A recent study by Regus found that 74 percent of companies internationally say that they are using Social Media as part of their marketing strategy. More than 70 percent of small companies have a presence on FaceBook. 50 percent of companies use Twitter, and 55 percent are using Social Network sites like LinkedIn and Xing. 43 percent of companies say that using Social Media has helped win them new customers.
But despite the successes of Social Media, there is a down side for companies too. When not used or managed properly, Social Media can cost companies money too. For example, in February Gartner released a report which found that by 2013 more than half of companies involved in a lawsuit will be required to provide Social Media data as part of a request for eDiscovery.
A report by Symantec finds that, on average, a company using Social Media will experience nine Social Media incidents each year involving damaged reputation, lost of customer trust, data loss or lost revenues.
Symantec identified the three most prevalent dangers of Social Media:
- Employees sharing too much information with Social Media
- Employees accidentally or purposely sharing company confidential or proprietary information
- Increased exposure to litigation
Financial loss due to Social Media incidents were identified in the following categories:
- Adverse affect to stock price
- Litigation costs
- Financial costs
- Damage to reputation and lost of customer trust
- Lost revenues
Debra Logan, Vice President and Analyst at Gartner, said that “Unique aspects of social media present additional challenges, but as with an overall information governance strategy, the key to avoiding or mitigating potential legal issues in the use of social media for business purposes is to have a governance framework, policy and user education.”
