Now that BYOD has gone mainstream, employees are using their smart phones for all sorts of work-related tasks. And while this has turned out to be a positive trend for many companies, improving productivity, reducing costs and boosting morale, it has also introduced new risks.

From sending texts to co-workers, to receiving emails from clients and researching a competitor online, any time an employee uses his or her personal device for work, the company could be liable for any illegal activity carried out on the device. If an employee sends a harassing text message to a coworker using his or her smart phone or forwards sensitive information to an unauthorized recipient, the company could be at risk. As long as a plaintiff can show that a mobile device was used to perform work, the company could be liable for any activities carried out on it.

Sexual Harassment

Sexting is the new flirting. A recent story on Mashable recounted a survey of 2,097 adults by Harris Interactive that revealed that one in five parents of children younger than 18 said they have used their smartphones to sext. About 26 per cent of adults overall admitted to taking or receiving explicit photos and 40 per cent of 18 to 34 year olds admitted to sexting.

But when the recipient isn’t onboard, sexting isn't flirting, it’s harassment, the same way it would be if an employee said something inappropriate to a coworker in the office hallway. And while sending a private message on a mobile device may seem to be a private activity, if it’s done on a mobile device used for work, the company is implicated.

Even worse, text messages sent on mobile devices are traceable. So are voice messages. They leave indelible evidence that can be used against a company in a lawsuit.

Distracted Driving

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In 2012 Coca Cola was hit with a $21 million distracted driving lawsuit after a Texas woman was hit by an employee who was talking on her cell phone while driving a company vehicle.

Using a cell phone while driving is illegal in most states, but that doesn’t stop people from talking, texting, checking email and taking photos from behind the wheel. According to a World Health Organization report, entitled Mobile Phone Use: A Growing Problem of Driver Distraction, the use of mobile phones while driving leads to an increased crash rate compared to when a driver does not use a mobile phone and while the relative impacts of distraction on driving ability may vary by type of phone, age, or sex, using a mobile phone while driving increases the absolute likelihood of a collision for all drivers.

Lost Devices

Another major BYOD risk companies face is loss of a mobile device used for work. Whether company-owned or not, a lost device leaves a company vulnerable to trade secret theft or leaks of sensitive information about clients and employees. If the device is used to access the company network, it may leave the company’s systems open to hackers.

Rules of BYOD

With the potential for a great deal of headache, it’s no wonder some companies are reluctant to allow employees to use mobile devices for work. However, strict rules against mobile use may do more harm than good, as studies show that mobile device use can increase productivity and efficiency and that restricting their use can have a negative effect on morale.

The answer lies in effective BYOD policies that are simple and clear and reflect the existing policies and culture of the organization. With strong policies, communication and employee training, progressive companies can embrace the advantages of the BYOD movement, while managing the risks.