Cybersecurity is a growing concern for the defined contribution industry. Recordkeepers, in particular, are prime targets for cybercriminals — posing greater risk to highly-sensitive participant data and their account balances.
With the rise in cybercrime and recent cybersecurity guidance from the Department of Labor (DOL), plan sponsors, recordkeepers, and third-party providers have been on the hook to modernize their data-handling procedures and information technology (IT) networks to protect participant data and assets from hackers.
Unauthorized access of data through the employer’s systems is just one way cybercriminals access information. But in many cases, plan participants are unknowingly allowing cyber criminals access to their retirement plan accounts simply by opening an email, clicking on a link, answering a call, posting on social media, online shopping, or using telehealth services.
Securing the personal data and assets of participants is a critical aspect of being a plan fiduciary. Yet participants also have the responsibility to protect their own retirement plan information and savings. Plan sponsors can encourage participants to be a part of the cybercrime solution in two ways:
1. Share the Department of Labor’s (DOL) Online Security Tips with participants.
It’s a simple, clear list of steps participants should take to secure any account — but especially their retirement plan accounts — from fraud and loss.
2. Provide examples of how sneaky hackers can be.
Offering participants examples of the many sneaky ways hackers access data — often using the victim as an unknowing accomplice — could be eye-opening enough to spur caution.
Learn more about how plan sponsors can encourage participants to combat cybercrime and protect their retirement plan savings.
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These articles were prepared for US investors and may contain information that may be materially different for Canadian investors, particularly with respect to taxation matters and after-tax returns. These differences may affect suitability for Canadian investors, and these materials should not be relied upon by Canadians in making any investment decisions. This material is provided to you for informational purposes only and may not be distributed or shared with others. The information provided is general in nature and may not be relied upon nor considered to be the rendering of tax, legal, accounting or professional advice. Readers should consult with their own accountants, lawyers and/or other professionals for advice on their specific circumstances before taking any action. All figures in USD unless otherwise stated.
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