The Mobile Workforce
No longer are just executives, salespeople or field service techniciansrelying on smartphones to help increase their productivity and keep them intouch with customers? needs.? Requests are coming from all ends oforganizations to access company email, calendars and CRM applications.? Asa result, the use of smartphones in the workplace is increasingexponentially.? If you are reading this, you are probably well aware ofhow many company-issued smartphones you currently have in service.? Youare also probably aware that more and more employees are asking to access yourcorporate network from their personal smartphones.? According to ForresterResearch, a leading technology and marketing research company, half of thesmartphones in use in U.S. and Canadian businesses are not company assets.
The immense growth over the next several years of smartphones and othermobile devices such as tablets is universally predicted:?Forrester?predicts that, by 2013, smartphone usage among U.S.information workers will triple.[1] Gartner?has projected that global unitsales of smartphones will exceed PCs by mid-2011, and by some accounts, thishas already happened.? At a recent presentation at IFA in Berlin, EricSchmidt noted that the mobile Web is growing eight times faster than theequivalent desktop Web model of ten years ago, and that smartphone sales willsoon surpass PC sales.? And Mary Meeker has predicted that more peoplewill access the internet via mobile devices than via desktops by 2014.[2] Inaddition, the use of even basic text services on mobile devices has increaseddramatically over the past few years.? Indeed, as of January 2011,comScore was reporting that 68.1% of US mobile subscribers used text messagingon their mobile device, up nearly 3% versus the three month period ending April2010.[3] Others have put US text messaging penetration as high as 72%.[4]
Inevitably, this dramatic increase in mobile device usage will push into theworkplace. This will be driven by both employees bringing their personal mobiledevices into the workplace (oftentimes being reimbursed by their employers),and by customers and clients wanting to interact with their service providersand vendors while on the go.??? According to a recent survey of2,000 IT professionals in 87 countries, IBM found that more than half believethat within the next five years, more developers will be working on mobileapplications and cloud-based architecture than traditional computing platformsfor the enterprise. ?In all areas of software development, mobile computing isseen as the number-one hottest IT opportunity next year,? said Jim Corgel, anIBM general manager of independent software vendors and developer relations.?Not only will mobile spike to the forefront, but by 2015, respondents said itwill dominate everything. The cell phone is no longer a gadget ? it?s what ITis going to become.?[5]
As companies like Microsoft, Research in Motion, Apple, and Google allcontinue to make connecting employee-owned smartphones to the enterpriseeasier, the need for increased data security and compliance becomescritical.?? This need is amplified if your industry is regulated,like financial services or pharmaceuticals, where the archiving of businesscommunications is compulsory.? Where do text messages (in the SMS or PINformat), IM?s (instant messages or BlackBerry messages), and other forms ofcommunication sent and received by smartphones come into play when discussingcompliance?
Capture and Archive of Mobile Communications in Financial ServicesIndustry
?Just as cell phone calls are not recorded, neither are textmessages. Regular text messages sent through regular cell phones are not keptin any central repository. When you zap them from your phone they are, inalmost all instances, forever zapped. There is no federal law requiring thatthey be stored or kept by the cell phone provider.? -? MikeWendland, Detroit Free Press Technology Columnist
The above quote is from 2008, but not a lot has changed since then.?During this time, several mobile carriers in the US have instituted SMSarchiving for short periods of time.? However, special requests have to bemade to the carrier, there are no guarantees that the messages will beavailable and when received, the messages are in bulk individual form and arehardly usable, as conversation threads are not rebuilt.? Software has alsobeen developed that can recover deleted texts from a smartphone?s SIMcard.? However, this only works for GSM devices and can easily bemanipulated or discarded by the device user.
The need to archive mobile messaging communications is most clear in thefinancial services industry in the U.S. SEC Rule 17a-4?which mandates thatsecurities brokers, dealers and members of national securities exchangesmaintain records of their transactions and business dealings and that thoserecords be preserved for a minimum of six years, the first two years in an?easily accessible place.?? The affected records are broad and encompasscommunications generated and received by individuals within financialinstitutions, including inter-office memoranda and internal audit workingpapers, as well as automated messages sent to all customers such as emailblasts.? Indeed, in a recent administrative action, the SEC found that aninvestment firm willfully violated Rule 17a-4 because ?it failed to preservefor three years certain communications related to its business as such,including text messages and instant messages.?[6]
FINRA further requires that its members implement supervisory reviewprocedures for all correspondence of their registered representativespertaining to the solicitation and execution of all securities transactions,which includes email and other forms of electronic communications. In recentguidance regarding the supervision of electronic communications, FINRAclarified that the term ?electronic communications? include ?such forms ofelectronic communications as instant messaging and text messaging.?[7] To theextent that employees of these regulated firms use mobile messaging for tradingor other business purposes, such communications need to be captured andarchived.
To date, many financial institutions have either instituted a policyforbidding the use of text messaging (except for internal instant messagingsystems) and/or have disabled messaging on their company phones.? This iscertainly a viable option ? as long as such communications methods aren?t beingused for business purposes, then financial institutions can stay incompliance.? The question, however, is whether this model issustainable.? More and more employees want to use these types ofcommunication methods because they have become commonplace and because theywant more flexibility around their work schedules and habits.? One largefinancial institution in the US, for example, reimburses mobile phone expensesfor nearly 17,000 registered representatives, but has implemented technology todisable text messaging because the devices are used for businesspurposes.? However, because these are phones that are owned by theregistered reps, the registered reps have been complaining and the financialinstitution feels the need to find a solution to this problem.
Even more importantly, however, customers and prospects want to communicatewith their brokers and investment professionals via these types of messagingmethods.? One small investment advisory firm based in the Midwest relayeda story of one of its most important clients BBMing one of the firm?s seniortraders from his yacht on Lake Michigan.? Of course, the trader could notrespond because the communication was not being captured.? The device wasnot in voice call range and so the communication had to wait until the yachtreturned to shore later that day. Is it really prudent and/or sustainable tolimit an employee?s interactions with their most important constituents??And when we have asked these financial institutions why messaging has beendisabled (or is otherwise unsupported), they say simply ?because we can?t trackit.?
Last Fall, the FSA, (Financial Services Authority)?officially extended?the taping rules? (PS08/1, PS10/17: Taping of Mobile Phones ? Feedback onCP10/7 and final rules) to require recording and archiving of all voice andelectronic communications dealing with orders, negotiation or arrangement oftransactions in the financial services industry. Today, enterprise mobility andflexible working is a reality as more and more, employees are conductingbusiness outside of the office. Recording mobile conversations now will notonly be mandatory in financial services firms but also demonstrates goodgovernance particularly in areas where client transactions are conducted byphone. Now, all calls can be quickly retrieved and replayed to protect businessoperations from the potential of misunderstandings or misrepresentations laterdown the road. Corporate mobile phone costs often include a high percentage ofpersonal usage by employees. Recording employee calls ensures better adherenceto company policy regarding personal usage of company mobile phones.
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Message Capture and Archive in Other Industries
Other regulated industries include pharmaceuticals.? Pharma firms areregulated by the FDA?and other self-regulating industry organizations thathave guidelines to help assure that promotional materials used by such firms,as well as communications between representatives of such firms and doctors& healthcare professionals, are accurate, fairly balanced, and limited toinformation that has been approved by the FDA as well as other standards.?Many pharmaceutical firms want to enable their field sales force to use SMS andBBM with doctors and other customers, but feel the need to monitor suchmessaging to ensure they are staying in compliance with existingregulations.
Another area where mobile compliance is becoming ever more important is incollegiate athletics.? The NCAA?has strict rules about the frequencywith which college coaches can contact recruits and their families.? Withmobile compliance solutions, college coaches can more easily report theiractivities in compliance with the NCAA reporting requirements, and collegeathletic departments can rest easier knowing that they will be alerted ifanyone steps out of compliance.
But regulated industries are only the beginning ? companies from all kindsof unregulated industries are interested in message capture and archive for avariety of reasons.? Ever since the Deepwater Horizon blowout, companiesin the oil & gas industry have been learning how to capture and archivemobile messaging and mobile voice calls from their employees and subcontractorson oil drilling sites to ensure they have complete records of allcommunications between relevant parties going forward.? Constructionengineering firms that have had on-site disputes between contractors andsubcontractors about changing specifications at a construction site have beeninquiring about such a service. Commercial real estate firms want to track thecommunications of their property management, marketing, leasing and developmentprofessionals in the field.? Consumer products companies want to keeptrack of their sales reps in the field.? The list goes on.
In a survey of over 100 technology and strategy decision-makers responsiblefor messaging archiving conducted in 2010, Forrester found that 40% ofmessaging archiving stakeholders planned to roll out or expand solutions in2010.? And while IT operational objectives such as lowering storage costs,improving backup and recovery and boosting message application performancedefinitely remain important, legal risk mitigation needs have becomeparamount.? Among stakeholders planning to expand or roll out messagingarchiving in 2010, the top drivers are meeting regulatory requirements (85%)and easing eDiscovery burdens (77.5%).[8]
Policy vs. Privacy
Any type of surveillance tool, however, should be treated carefully bycompanies that seek to deploy it.? First and foremost, companies should beupfront with their employees and put them on notice that their messaging isbeing archived for corporate purposes.
Indeed, in a June 2010 decision, City of Ontario v. Quon, the US SupremeCourt unanimously upheld the search of a police officer?s personal messages ona government-owned pager, saying it did not violate his constitutional rights.The warrantless search was not an unreasonable violation of the officer?s 4thAmendment rights because it was motivated by legitimate work-related purposes.The city was trying to determine whether it needed to modify its wirelesscontract, which imposed fees after employees exceeded character limits on textmessages.
While the privacy issue in?City of Ontario v. Quon?involved agovernment intrusion into personal communications, that is, whether or not the4th Amendment applied to the electronic communications of public employees, thedecision will likely have an impact on future court decisions involving privateemployers.? It is clear from the Court?s decision that, although companiescertainly should be as explicit as possible, an employer?s policy regardingmonitoring need not specify every means of communication subject to the policy.The implication is that employees should assume that any electronic deviceprovided by an employer may be subject to monitoring, whether or not such adevice is specifically mentioned in a written policy.
Elements of an Ideal Solution
Any solution to the problem of mobile communication capture and archivingmust be comprehensive.? The solution must be able to monitor, log,archive, or block mobile communications, and must be able to recreate theentire message conversation just like an email chain.? In addition, thesolution must be able to track the movement of mobile communication devices andensure that employees cannot get around the policy.? Finally, it must beeasy for your compliance team to access the information necessary to properlyaddress security breaches or violations of company guidelines.
Features of the solution aside, it must offer many characteristics thatallow it to be implemented easily and integrated seamlessly into your company?snetwork.? Scalability, upgrades, and data backup must also be keyfactors.? Let?s start breaking down the ideal mobile communicationmonitoring, capture and archiving solution in terms of its handling of variousfeatures and functionality.
Handles All Message Types
The ideal solution captures a multitude of popular mobile messaging types,such as SMS, BBM, PIN-to-PIN messaging, and some of the public mobile instantmessaging services such as AIM and GoogleTalk.? All of these message typesshould be captured through a single application and each message type should beable to be identified as such.? The ideal solution offers data storage inthe WORM (Write Once, Read Many) format making changes and deletionsimpossible.
Device Platform Agnostic ? ClientBased Solution
The ideal solution should also capture messages from any device.? Somesolutions are centered around the BlackBerry Enterprise Server?s messaginglogging capabilities, but that leaves a large portion of smartphones withoutcoverage.? The best way to ensure coverage on all major smartphone deviceplatforms is to have a client-based solution, meaning software applicationsthat are downloaded to the device and then ?listen to? or ?watch? messagingactivity occurring on the device in real time.
Several ancillary features then accompany a client-based solution.?First, the client application should regularly report to the backend serverthat it is running properly.? Second, other features such as messageblocking (described later) must be able to be provisioned from the web,providing a remote control function over the client application.? Finally,regular updates and upgrades to the software application must be automated andpushed over-the-air (?OTA?) to mobile devices in service.
Conversation Thread Rebuilding
Because much mobile messaging consists of short, sometimes cryptic text, itis ever more critical for an archiving solution to be able to rebuild themessage conversation thread so that messages can be viewed in context.?The conversation threading parameters should be configurable by the enterpriseas well so that they can change the ?length? of the conversation as needed tosee the entire context of the conversation.
Easily Searchable Archive
In regulated industries, e-communication archiving is compulsory.? Butthe messages need to be accessed easily in order to have any value to acompany.? If each time someone wants to see a message exchange from lastyear, hundreds of different offline files need to be searched, it puts a hugechilling effect on people actually searching for the relevant communicationsand in any event will take an inordinate amount of time.? What is neededis a single archive that contains all of the relevant messages, searchable bydate, name, keyword, other person in the conversation, and message type.
Monitoring
The ability to monitor mobile communications sent and received isparamount.? The monitoring function gives your compliance officer theability to identify potentially dangerous messages and take real-time action toenforce company policies and limit your exposure.? The solution must allowyou to monitor use of certain keywords or phrases or certain number patterns,such as credit card numbers or social security numbers, in order to ensureemployee adherence to company policies.
Blocking and Filtering
Certain types of communications do not belong on your company?s smartphonesor within the infrastructure that supports them.? Being able to configurethe solution to filter or block incoming and outgoing texts or other mobilemessages keeps inappropriate and potentially harmful content and/orcommunications from coming into the organization or going out of it iscritical.? An especially important element of blocking is being able toeasily enable it by keyword, domain or sender.
Flagging and Alerting
When a protocol has been breached or when a device or device application hasbeen compromised, your compliance and security staffs need to know right awayso they can determine the source and decide on the appropriate response. Theideal solution includes advanced reporting capabilities that send alerts to theright people once any mobile communication protocol has been violated.?When combined with robust logging capabilities, the ideal solution can flag aninappropriate communication and create an audit log file automatically.
Usability
The ideal solution also needs to have an intuitive user interface that putsthe power of its capabilities at the fingertips of an authorized user, usuallyan IT security or legal compliance officer.? Following a secure login, theuser should be able to do the following:
Install the solution on a smartphone or other mobile communication device atthe device?s keyboard or ?over the air? Directly access the mobilecommunication archive to search for messages Review and annotate conversationsto ensure policy compliance Access a variety of reports and create ad-hoc dataqueries, then export results to multiple file types Set up a variety of flagsand alerts to be sent out under various circumstances
No Impact to End User
Any client application residing on a mobile device should beultra-lightweight and should not impact device functionality or, of course,worker performance.? This means that the client application should beoptimized to limit processing on the device and to limit battery usage.?An ideal client application should not be noticeable to the end user, meaningan end user should not notice any difference in device functionality or batterylife once it is loaded onto the device.
Privacy Features
By their nature, monitoring and archiving solutions provide company IT andcompliance departments information that users might not want to share.? Assuch, it is critical that companies inform their employees that suchapplications are being used by the company.? In addition, however, theclient applications themselves should provide subtle notices or reminders toemployees that a message capture application is resident on their device.
In addition, however, message capture solutions can also proactively limitmessages captured to those used for business purposes.? In this regard,world class message capture solutions should have time-of-day parameters thatcapture only messages sent or received by a user between, for example, 8 AM to8 PM on weekdays.? This would give users peace of mind that their personalmessages occurring after hours or on weekends are not being captured.? Inaddition, whitelist & blacklist features can be implemented to eithercapture all messages except messages to/from certain specific personal contactsor not to capture any messages except messages to/from certain businesscontacts.
Uninstallation Protection
On the flip side, companies will not be able to rely on a message capturesolution on a device unless there is sophisticated protection from usersuninstalling the application.? End users should not be able to remove theclient application without a password.? Additionally, in order to ensurenothing has happened at the operating system level, the client applicationshould establish regular communication with the server, with alerts being sentout if these communications cease.
Integration with Existing Archiving Solutions
The ideal solution will integrate with the company?s current email or otherdocument archiving solution or data vault.? This creates ease of use andis a more efficient utilization of a company?s data storage resources.
Encryption / Security
The ideal solution must insure that all mobile communications are secured byusing, at the minimum, SSL encryption technology.? Secondly, data backupsmust be securely encrypted, especially if mirror image records are to becreated for web use.? Finally, data archives must be secure andunalterable through the use of encryption and WORM.
The Ideal Solution Exists ?TextGuard
This white paper has discussed the elements of an ideal solution for mobilecommunication security in great detail.? So just how does TextGuardmeasure up?
TextGuard meets all of the criteria setforth above and its list of features, capabilities, and advantages aresubstantial.? TextGuard also offers a 24/7 support portal with acomprehensive knowledgebase, updates and new releases, new user setup, andsupport ticket handling.? In addition, the solution can be customized toyour company?s specific needs and requirements.? Uptime and performanceSLA?s are your guarantee that TextGuard will perform when it mattersmost.? Finally, every archived message is continuously accessible withabsolutely no time limit.? You may set the length of time messages arekept based on the specific regulatory and compliance guidelines of yourindustry.
TextGuard was designed by veterans in the Compliance, Data Security andInformation Technology industries to be the premier information monitoring,capture and archive solution for mobile communication.? After a thoroughtechnical, market and feasibility analysis, Todd M. Cohan founded TextGuard tosucceed in a volatile and ever-changing IT marketplace by being a total mobilecommunication solution with robust features, 24/7 support, and the innovationnecessary to become and remain the benchmark in the industry.? TextGuardoffers many different solutions for mobile archiving and allows firms toutilize one vendor for their mobile compliance solutions.? TextGuardoffers solutions for text messages, instant messaging, as well as their productVoiceGuard torecord and archive mobile voice calls as well.
We hope this white paper has shed light on how mobile communications can bemonitored, captured and archived and the unwanted consequences that can resultfrom failure to do so. There can be but one conclusion drawn from theinformation presented here.? TextGuard is the ideal solution for creatingan overall enterprise-wide mobile messaging archiving regimen for everysmartphone in use on your company?s network.? For more information, visithttp://www.textguard.com.
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[1] http://www.forrester.com/rb/research
[2] ?Internet Trends? presentation, Morgan Stanley, April 12, 2010.
[3] ?comScore Reports January 2011 US Mobile Subscriber Market Share,?comScore press release, March 7, 2011.
[4] ?Cell Phones and American Adults,? Pew Internet, a project of the PewResearch Center, Sept. 2, 2010, page 2.
[5] ?IBM Survey Says Mobile Apps Will Dominate Enterprise,? The Wall StreetJournal (WSJ Blogs, Venture Capital Dispatch), October 7, 2010.
[6] ?In the Matter of Evergreen Investment Management Company, LLC andEvergreen Investment Services, Inc.?, SEC Administrative Proceeding File No.3-13507, June 8, 2009, page 13.
[7] ?Supervision of Electronic Communications?, FINRA Regulatory Notice07-59, December 2007.
[8] ?Regulatory and eDiscovery Demands Drive a Growing Messaging ArchivingMarket?, Forrester, March 17, 2010, pages 4-5.
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Todd Michael Cohan ??Founder &CEO
As TextGuard?s President and CEO, Todd is responsible for setting thecompany?s strategic vision and leading its growth and industry leadership. Hehas guided the company from startup to its current position as the leadingmobile compliance company in the US by focusing on customer needs, innovativetechnologies and industry growth. Todd has over 15 years? experience buildingbusinesses in the information technology and enterprise security space.
Todd began his career in IT with Metacom Technologies, which he founded in1997 to provide Fortune 500 companies with information technology resources. Asits President and CEO, Metacom grew to over 100 consultants, generating overmillion in revenue and became the first IBM Premier Business Partner to host atraining facility for IBM staff and IBM business partners.
At the request of several customers, in 2005, Todd launched Sacure, aprovider of data security, managed security and professional securityconsulting services. Sacure?s clients ranged from banks and financialinstitutions to auditors who rebranded the solution for compliance requirementsfor regulated industries. Todd was responsible for the design, architecture andstaffing of the world-class 24/7/365 security operations center, developed allmarketing and public relations campaigns, developed and led the telemarketingand sales division, and built strategic relationships with industry specialistsand advisors.
Todd Michael Cohan founded TextGuard in 2007 with parental monitoring andchild protection in mind, but quickly saw the emerging needs in the financialservices industry as well as other industries such as pharmaceuticals,healthcare, construction, and energy. TextGuard has been featured in the mediaincluding CBS TV as well as on Dr. Phil.
Todd received a B.S. from Rutgers University in 1995 and lives in New York,NY. Todd is also a graduate of MIT?s Birthing of Giants EntrepreneurialProgram, and was named as part of the Top 100 Entrepreneurs in the UnitedStates very early in his career. Todd has also appeared on CNBC, in the WallStreet Journal and on various nationwide radio programs.
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