The Employee Retirement Income Security Act (ERISA) was passed in 1974. Think about how much has changed since then! No wonder there is increasing pressure for thorough regulatory updates to better protect the trillions of dollars in 401(k) and similar accounts.
How Safe Are Retirement Funds?
The Government Accountability Office (GAO) is increasingly concerned about the impact of cybercrime on retirement accounts. Prevention and mitigation efforts need to evolve and the Department of Labor has been advised to clarify and update regulations, making them relevant to the times at hand. As Market Watch reports:
“Cyber theft from retirement accounts is a growing concern,” Steve Silberstein, chief executive officer of the Financial Services Information Sharing and Analysis Center (FS-ISAC), which combats cyber fraud in the finance industry….“In the U.S., people tend to hold a substantial amount of their wealth in a retirement account so they are relatively high-value targets. Customers often re-use the same passwords for different accounts, which increases the likelihood of their credentials being available for sale on the dark web.”
Silberstein mentions another all-too-common problem. “Smaller record-keepers and third party clients may not have a high level of sophistication when it comes to cybersecurity, especially when battling criminals who constantly evolve their tactics.”
Small businesses are especially vulnerable to cyber breaches and do not have access to the same kinds of protections that larger companies are able to put in place. Avoid disaster by having an expert response plan. You don’t have to go it alone. Let Colonial Surety Company help you. Armed with Colonial’s Cyber Liability protection, in the event of a breach, expert forensic and legal experts will identify what’s been comprised and coordinate the response. As needed, call-center support, credit and identity monitoring services and even public relations expertise are provided. Liability protection in the event of covered lawsuits or regulatory actions due to a data breach? Of course, that’s included too.
Designed especially for retirement plan sponsors, Colonial’s packages include:
- The required ERISA bond which protects the assets of the retirement plan from theft;
- Fiduciary Liability coverage to protect you and your assets from personal liability; and,
- Cyber Liability coverage to safeguard your company and plan from covered losses and expenses in the event of a cyber breach.
With Colonial, you can easily and affordably secure this complete coverage package.
Common Sense Precautions
In addition to securing protection in the event of a cyber breach, plan sponsors can also drive attention to safety practices for everyone to follow. For example, experts remind us not to overlook “common sense” precautions. Here are some tips to communicate to all plan participants, employees and service providers:
- Look carefully at emails trying to get your personal information; phishing emails will often have wrong phone numbers or bad links. If in doubt, delete.
- Don’t download banking applications found on open forums. Go to the institution’s website and use the link to the appropriate app store from there.
- Set up multifactor authentication (MFA) as well as unique usernames and passwords on all accounts: email, personal and professional social media, bank, retirement, and investment accounts, healthcare accounts, insurance accounts, etc.
- Install updates on your computer, devices and apps regularly.
- Provide updated contact information to the retirement account and utilize options to be notified when funds are being moved out of accounts in real time.
- Monitor accounts at least once a month to see any unwanted activity.
Why wait for the DOL to spell out your fiduciary responsibilities related to cyber threats? Colonial Surety Company provides Cyber Liability protection for your plan—and Fiduciary Liability protection for you. Let’s get you covered! Just choose your Affordable and Complete Protection Package Now.
Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country.