Deloitte, an industry-leading audit, consulting, tax, and advisory services firm, was in the news recently for a shocking reason. The company failed to archive more than 650,000 iMessages sent by employees due to their attempt to implement a "Disable or Block" policy. This policy was intended to prevent employees from using iMessage, which is encrypted and difficult to archive.
How Deloitte Learned the Hard Way: The Dangers of Not Archiving iMessages
By disabling/blocking iMessage and allowing only SMS and MMS, Deloitte believed they could capture, review and archive those SMS and MMS messages. However, the “Disable or Block” policy was unsuccessful as the control tool they implemented failed at disabling iMessage and keeping it disabled on iPhones. As a result, Deloitte was out of compliance and not meeting its regulatory requirements under FINRA Rule 4511, Exchange Act Rule 17a-417, and FINRA Rule 2010. Due to the violation, FINRA censured and issued a $200,000 fine to Deloitte for not archiving iMessages.
How Other Companies Are Avoiding Deloitte's Compliance Gap with FirmScribe
This was a significant compliance gap that could have been avoided if they had used FirmScribe to capture iMessages. Other companies have turned to FirmScribe, which eliminates the need for additional apps or manual workflows. By automatically sending iMessages to the archive and review platform that is already being used (Smarsh, Global Relay, Proofpoint, etc.)
“Disable or Block” Policies Don’t Work
The failure of Deloitte to archive iMessages due to their "Disable or Block" policy is a cautionary tale for all firms that fail to implement capture solutions for popular messaging platforms. While it may seem like a convenient solution to disable iMessage, it can lead to severe consequences for a company. Fortunately, solutions like FirmScribe exist to ensure that iMessages are archived, enabling organizations to avoid any potential regulatory issues while maintaining a strong reputation.
Don't wait to experience the power of FirmScribe and its 14-day free trial! Our capture tool could have saved Deloitte from regulatory repercussions - don't get caught in that same trap.
