The new cyber reality: Helping participants combat cybercrime

Helping participants combat cybercrime and protect their retirement plan savings

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.

Taking action

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.