How to Keep Your Retirement Account Data Secure
Despite recent media coverage of data breaches, it’s still easy to think, “It won’t happen to me.” However, just like any type of online account, considering the nature of how we access and view our retirement accounts and the kind of personal information that these accounts contain, a conversation around the safety and protection of information is imperative.
Digital platforms have introduced unprecedented convenience into our lives. It is now the norm to have access to your accounts anywhere, anytime and on any device. However, when sensitive information becomes available to us in more ways, it may also be more susceptible to cybercrime.
At the end of the third quarter of 2021, the total amount of retirement assets in the United States was $37.4 trillion, according to The Investment Company Institute. This amount of capital makes retirement assets a big target for cybercriminals since the accounts in which these assets are held include account owners personal information—which could expose individuals to identity theft and fraud.
In 2021, the U.S. Department of Labor released new guidance for plan sponsors and fiduciaries regulated under the Employee Retirement Income Security Act of 1974 (ERISA). The guidelines took three forms:
- Tips for Hiring a Service Provider intended for plan sponsors and fiduciaries
- Cybersecurity Program for Best Practices for fiduciaries and record-keepers
- Online Security Tips for plan participants and beneficiaries
Cybersecurity is an ongoing concern that rightfully affects attitudes toward retirement savings, and as individuals, we should feel empowered to take steps to keep our accounts secure.
As you plan for your future, keep your accounts secure, and stay current on the latest signs of identity theft and the tools available to you to monitor your accounts.
Learn more in “Tips for Protecting Yourself from Identity Theft.”
The material in this Blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Millennium Trust Company performs the duties of a directed custodian, and as such does not offer or sell investments or provide investment, legal, or tax advice.