The Communication Risks Finance Teams Can’t Afford to Ignore

In the financial services industry, client trust, compliance with regulations, and accuracy are essential for successful operations. All rely on secure and effective communications. 

From ever-evolving cybersecurity threats to strict regulations like FINRA, financial institutions must treat secure communication not as a luxury but as a fundamental requirement. 

Here are the top seven most common communication threats finance teams must address.

Wake-Up Call: What Finance Teams Can Learn from Industry Missteps

Numerous high-profile financial firms have suffered consequences from insecure communication practices. In 2023, JPMorgan Chase, Morgan Stanley, and several other major banks collectively paid over $1.8 billion in penalties for employees using unauthorized messaging apps like WhatsApp and Signal to conduct business, violating SEC and CFTC recordkeeping regulations. 

Likewise, FINMA ’s investigation into Credit Suisse’s compliance failures revealed that fragmented communication across teams—using a mix of chat apps, emails, and personal devices—contributed to oversight breakdowns and regulatory scrutiny. 

These lapses weren’t just technical oversights—they were breakdowns in communication culture and enforcement that put customer trust, compliance, and reputation at risk. 

7 Common Communication Issues Putting Financial Teams at Risk 

1. Unsecured Communication Channels

If members of your finance team utilize unsecured communication channels for work, sensitive financial data can be exposed to interception and unauthorized access. Commonly used unsecured communication channels typically include personal email accounts or messaging apps. 

Beyond leaving sensitive information at risk, using these channels can result in financial penalties from federal regulators.

Mitigation Steps

• Implement encrypted communications for finance teams to protect sensitive conversations. FINRA requires financial institutions to use 256-bit or higher encryption.
• Establish and enforce policies restricting the use of unauthorized communication platforms and apps.

2. Shadow IT and Unauthorized Applications

The use of unauthorized applications, known as Shadow IT, can be a huge issue for financial teams. When employees use an unauthorized application for communications or collaboration (even if the app is “secure”), they bypass official channels and security protocols, increasing the risk of data breaches. 

Alongside raising the risk of a breach, they increase context switching, reduce IT efficiency, and make collaborating with other team members more difficult.

Mitigation Steps

• Conduct regular audits to identify and eliminate unauthorized applications.
• Promote secure collaboration tools for finance that cover all your team’s needs to reduce reliance on Shadow IT.

3. Non-Compliance With FINRA Regulations

As a self-regulatory organization under the supervision of the Securities and Exchange Commission, the Financial Industry Regulatory Authority (FINRA) has a number of regulations governing brokerage firms and brokers. These regulations include those related to retail communications, institutional communications, and correspondence. 

As a financial organization, you must comply with FINRA regulations to avoid reputational damage and hefty fines. For example, in 2024, TradeZero America was fined over $250,000 for failing to supervise social media posts by paid influencers who violated FINRA’s retail communication regulations.

Mitigation Steps

• Implement a supervisory system to monitor and approve public communications.
• Ensure all communications are compliant with retail communication FINRA requirements.

4. Data Breaches from Third-Party Vendors

Even if you encrypt all your communications, comply with FINRA, and ensure that employees only use approved messaging apps, a third-party vendor without proper safeguards could lead to a data breach. 

In 2025, Marks & Spencer suffered a significant cyberattack due to a breach in a third-party supplier, resulting in a £300 million loss in profits. These significant financial losses underscore the risk of third-party vendors being a potential weak link in your communication infrastructure. 

Mitigation Steps

• Conduct thorough security assessments of all third-party vendors.
• Include strict data protection requirements in vendor contracts, and ensure all communications with vendor are contained in a secure messaging platform.

5. Outdated or Insufficient Collaboration Tools or Platforms

When finance teams use outdated or insufficient collaboration tools, they raise the risk of non-compliant data handling and breaches. Even if a communication platform is up-to-date and compliant, you’ll want to be sure it has all the features, tools, and integrations your team  desires 

An insufficient platform will increase the chance that your team may be inclined to use an unauthorized tool or app to communicate or collaborate with others.  

Mitigation Steps

• Invest in secure collaboration tools for finance that include compliance features and encryption.
• Periodically evaluate your software’s effectiveness and ensure it aligns with industry regulations.

6. Human Error in Data Handling

Simple human mistakes (e.g., misclassifying information or sending an email to the wrong person) can lead to leaked data and lost client trust. Without clear data handling protocols and proper training, it’s much more likely that employees will mishandle data by accident.

Mitigation Steps

• Implement data handling protocols with multiple verification steps.
• Provide regular training to employees on secure communication in finance and proper data handling.
• Control sensitive information with software that allows you to manage sensitive, classified, and controlled data even between channels and team members within your systems.

7. Inadequate Mobile Device Management

Employees’ personal or unmanaged mobile devices can become entry points for attacks and can lead to problems with regulatory non-compliance. These devices are more at risk of mobile phishing attacks, leaked data from using public networks, and malware infections. Employees are also more likely to use unauthorized apps on unmanaged devices. 

Mitigation Steps

• Use mobile device management and enterprise mobility management tools to secure mobile devices and applications used for communication in finance.
• Restrict business communications to pre-approved, encrypted communication platforms with EMM capabilities.

Secure Your Financial Communications With Mattermost

If you want to reduce communication risks and comply with FINRA, your team needs a communication platform that’s purpose-built for the realities of communication in finance. Mattermost’s comprehensive communication platform is ideal for finance teams, offering self-sovereign collaboration, compliance with FINRA, deep integration with other mission-critical tools, and enterprise-grade encryption.

Learn more about how Mattermost’s communication platform for financial services can help your team.