Wall Street loves Snapchat, but it better be careful

It's bigger than Instagram and growing faster than Facebook, and no one seems to love it more than Wall Street traders.

It's Snapchat. The photo- and video-messaging app with the built-in self-destruct mechanism has surged in the past six months, with some 200 million Snapchats going out every day, CNBC's Kayla Tausche said on "Power Lunch" on Monday.

According to New York Magazine, Snapchat's biggest fan base is on Wall Street, among users who trade images of parties gone wild or office cubicles gone empty—or selfies that the sender just wants gone after a few seconds.

(Read more: Why Snapchat is worth $800 million)

But is Snapchat also being used to skirt the rules of the Street? If it is, the hall monitors don't seem to be up to speed to stop it.

In an interview July 17, U.S. Attorney for Southern District of New York Preet Bharara responded to a question about Snapchat from CNBC's Jim Cramer by saying, "I don't even know what you're talking about."

But those who would use Snapchats for illicit purposes should beware: Although they seem to disappear from devices, they in fact remain, hidden among the digital circuitry. And forensics experts can and have ferreted out damning Snapchats in some legal cases already.

By CNBC's Matt Twomey. Follow him on Twitter @Matt_Twomey