Our latest reader poll finds that most NAPA Net readers are concerned about retirement plan cybersecurity. But their plan sponsor clients? Not so much.
While more than three-quarters of the respondents to this week’s reader poll said they were concerned about the cybersecurity of the retirement plan accounts they work with, though that means that a full quarter were in the “not really” camp.
Only about 12% of respondents’ plan sponsor clients were asking/concerned about the cybersecurity of their retirement plan accounts, though about half (53%) were in the “some yes, others not so much” category. Thirty percent were in the “not really” category of (non)concern, and the remaining 6% said “not that I can tell.”
Not that that (apparent) lack of pervasive concern was the fault of reader poll respondents; 35% were raising the issue with their plan sponsor clients, and another 12% were doing so “every chance they got.” However, 29% were “not really” raising the issue, 12% weren’t, and another 12% were raising it with some, though not all.
The good news is: Only one in eight of this week’s respondents said that retirement accounts they work with had been hacked.
As for responses to their concerns:
62% - asking for written response/assurances from recordkeepers
36% - communicating about the risks to plan sponsor clients and prospects
23% - expanding RFP to take this into account
“Attackers are really getting so much more sophisticated,” explained one reader. “I received an email two weeks ago that appeared to be from a major financial institution proclaiming that it was my annual 404(a) fee disclosure statement. It looked genuine in all respects, except it wasn’t the same financial institution as my 401(k) and the message timing was off.”
“My worry is that none of us are truly safe from cyberattacks; with crime, when there’s a will, they will find a way,” cautioned another.
“They are getting better and better. They will follow a client account for months and pretend to be the client.”
Thanks to everyone who participated in our weekly NAPA Net reader poll!
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