In the new digital age, retirement plan participants are utilizing electronic platforms to access their 401(k) accounts. As all this vital, personal information moves online, your plan becomes more susceptible to fraud schemes and data breaches. Given the enormous amount of cash in U.S. 401(k) accounts, especially the past two years, it is almost inevitable that a large-scale cyber-attack could be coming. Unprotected retirement plans are prime targets for two types of digital attacks: theft of a participant’s data, which could lead to identity theft, and theft of a participant’s cash through fraudulent online transactions.
To safeguard plan participant’s data, plan fiduciaries must educate themselves and their plan participants on latent security threats while continuing to learn and implement novel safety measures to prevent future cyber-attacks. While it is not required for plan fiduciaries to completely comprehend the exact mechanics behind each threat, fiduciaries should be well-enough informed to understand market practices. Plan fiduciaries can draft educational materials or host employee training sessions to instruct participants on how they can further protect their valuable information. Such session should include how to create strong passwords, evolving security measures, and periodically monitoring your account for any changes and to mitigate any damages in the event your account is compromised. Plan fiduciaries should also document any efforts to protect retirement plan assets and information to amplify and demonstrate a continuous effort to prudently manage retirement plan assets.
With cyber liability insurance from Colonial Surety Company, you can respond to data breaches quickly and effectively. Our cyber breach experts can coordinate forensic professionals and specialized lawyers to help you determine what has been compromised. We also include access to extensive educational materials on topics like data breaches, loss control and risk management to help prevent a future attack.
Purchase Cyber Liability Insurance
Our cyber insurance can help you plan for tomorrow. To help build a prosperous future and safeguard the well-being of your company, our ERISA bond packages include ERISA fidelity bond coverage, fiduciary liability insurance and cyber liability insurance. With all three coverages in mind, your brand is protected from catastrophic damages. Contact us today to learn more about our ERISA packages and cyber liability insurance.