Chris Hopkins
Facebook iconYou never get a second chance to make a first impression. As in life, so also in social media. It is becoming increasingly common for third parties like lenders and potential employers to check out your online persona before deciding whether to transact with you. These days it pays to exercise judgment in what you post; it may come back to bite you.
It is evident that social media has touched a nerve, providing an outlet for expression and a medium of connection that was previously unavailable. According to Pew Research, nearly three quarters of all American adults on the internet are social media users. Facebook alone claims nearly 1.2 billion users worldwide.
For some users, this ubiquitous new form of expression invites the impulsive posting of more intemperate screeds, rants and pasquinades that tend to linger in the electronic ether long after their authors have forgotten them. Increasingly, this treasure trove of behavioral data is being mined by firms looking to supplement or verify information reported on applications. Knowing this should prompt a modicum of consideration before hitting “send”.
Some small specialty lenders, for example, are now actively searching social media sites for additional clues on loan applicants. Using data from public postings, these firms attempt to verify personal information like employment status and look for behavioral clues. For instance, did you claim five years’ employment on your application but Tweet about telling the boss where to go?
In addition to personal postings, these firms analyze Google reviews and other social media links searching for feedback from customers or associates to inform lending decisions.