DANA POINT, Calif. (10/22/14)--Credit unions are often encouraged to engage their members through the channels of social media, but once they fully enter that world they also need to make sure they "get their arms around" where all social media is coming from within the organization, according to a panel discussion held Tuesday at the Credit Union National Association Attorneys Conference.
Ross Hansen and Jennifer Kraus of CUNA Mutual Group addressed the compliance challenges that come with maintaining a presence on social networks.
Most importantly, they said, a credit union must be fully aware of all its social media activities at all times, including who is posting them and where they are coming from.
Existing regulations for advertising, privacy and lending also apply to social media messaging. For example, an advertisement may show differently on a mobile device than it does on a website, which could be a risk if certain required copy is cut off on a mobile platform.
According to Kraus and Hansen, general business liability insurance does not cover lawsuits for hosted website activities. Those activities generally require cyber-specific policies.
In addition, the credit union fidelity bond does not cover member losses incurred due to information mistakenly exposed through a credit union's website, only losses sustained by the credit union itself.
The two also advised that credit unions and other organizations may want to consider third-party vendors that can assist with social media setup, execution and tracking.