In a feature article from the latest issue of NAPA Net the Magazine, Judy Ward outlines eight ways to help thwart theft of participants’ assets.
There’s been lots of talk lately about the possibility of massive hacks that lead to participants’ money being stolen, but less-exotic crimes may pose a bigger threat.
“Plan sponsors and advisors do need to be concerned with large-scale cyber-attacks,” says Mark Bokert, New York-based partner and co-chair of the benefits and compensation practice at law firm Davis+Gilbert LLP. “But more prevalent than that is cyber-fraud, which occurs when a person poses as a plan participant and seeks to obtain a withdrawal from a participant’s account. It’s a big area of concern.”
Advisors can play a big part in helping plan sponsors take steps proactively to discourage fraudulent theft of participants’ assets. “There’s a lot more that we as advisors can start to do with our plan sponsors to help them build in processes that will help protect participants,” says John Jurik, national practice leader, retirement plan consulting at Rolling Meadows, Illinois-based Gallagher Retirement Plan Consulting. “A lot of committees are still very informal in addressing this. As we go forward, it needs to evolve from, ‘We did have some due diligence on cybersecurity when we did an RFP to choose a recordkeeper,’ to, ‘What is our annual process going to be around this?’”
To read the full article, click here.
