”Not if, but when is a phrase commonly used to describe data breach risk. Holding just under $11 trillion in assets, employer-sponsored retirement plans are a particularly enticing target for cybercriminals. Through audits and best practice guidance, the Department of Labor (DOL) is encouraging retirement plan sponsors to pay attention to managing cybersecurity risk.
Recognizing that businesses often outsource retirement plan administration, the DOL recently released cybersecurity guidance for plan sponsors, including tips for hiring a service provider with strong cybersecurity practices. Here we provide context about typical retirement plan breaches and offer additional insight on the DOL s best practice guidance.
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Abbott Laboratories beat back a 2020 lawsuit from a 401(k) participant whose account was fraudulently raided of $245,000.
The plaintiff, Heide Bartnett, also sued Alight Solutions, the plan’s recordkeeper, and that case will still go on.
An identity thief managed to get the bulk of Bartnett’s 401(k) assets transferred to a brand-new bank account, Bartnett has been able to recoup about $108,000.
Bartnett claimed that Abbott Labs breached its fiduciary duty by hiring Alight, and allegedly failing to monitor it. In the complaint, Bartnett pointed to other instances of retirement accounts at Alight being compromised, as well as an investigation by the Department of Labor.
6 Ways to Protect Your Retirement Accounts From Hackers msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
401(k) lawsuit update: 2 dismissals, 2 settlements
Abbott Labs and Genentech won dismissals in cases against them, although plaintiffs can refile their complaints. Cerner Corp. and BlackRock have reached settlements in class-action cases against them.
February 19, 2021 3 MINS
Abbott Laboratories this month fended off for the second time a 2020 lawsuit from a retirement plan participant whose account was fraudulently raided of $245,000.
The plaintiff, Heide Bartnett, also sued the plan record keeper, Alight Solutions, which has not succeeded in getting the claims against it tossed.
In early 2019, an identity thief began corresponding with the plan’s customer service center and eventually managed to get the bulk of Bartnett’s 401(k) assets transferred to a brand-new bank account, according to court records. Since then, Bartnett has been able to recoup about $108,000.