PLANADVISER - January/February 2020 - 17
cover story
3 ways to help your
clients protect against
cybersecurity threats
JOE Brummel and his colleagues at Strategic Retirement Partners
(SRP), in Minneapolis, were already checking as to recordkeepers'
data-security policies and procedures. But the need for
such provisions hit home for the SRP managing director when,
two years ago, someone tried to make a fraudulent $330,000
withdrawal from an account in a client's plan.
" Fortunately, it was caught before the withdrawal was made, "
Brummel says. The request had been notarized and dated, but
the plan's key sponsor-contact happened to recall that the
employee named in the request had been out of the state on
that day. " Everything looked legit, but the contact really paid
attention, because she's diligent, " he says. That incident led the
sponsor to ask Brummel what capabilities the plan's recordkeeper
and third-party administrator (TPA) had to stop cybercrimes
against participant accounts. " We were asking recordkeepers
questions about data security before, but this really
brought it to the forefront and made it a lot more real, " he says.
Cybersecurity threats, such as making fraudulent withdrawals
or stealing participant data and using it for identity
theft, have become a real issue for retirement plans. " All the
cybersecurity issues with the banks and credit card companies
have now reached the retirement plan industry, " says Jim
Sampson, director, retirement advisory services at Hilb Group
Retirement Services in Warwick, Rhode Island. " There are large
pockets of money in these accounts: It's almost like robbing a
bank, to 'get inside' a 401(k) plan. Often, there are millions and
millions of dollars, just sitting there. "
Sponsors have become aware of the cybersecurity threat
and need their adviser's help to address it. " It's rising to the
top of plan sponsors' concerns fairly quickly, " says Christopher
Kulick, a principal at CAPTRUST in Doylestown, Pennsylvania.
" As advisers, we are constantly challenged to evolve, and this is
a newer area for us. I don't hold myself out to be an IT [information
technology] guru, but I'm able to support my clients by
leveraging our internal provider-research group or our IT staff
and their expertise. For advisers, it's having the right people
internally, asking recordkeepers the right questions, and then
distilling the information down so it will be helpful to plan
sponsors in making good decisions about cybersecurity. "
Here we describe three ways that advisers can help sponsors
tighten their cybersecurity.
Art by Ryan Peltier
planadviser.com January-February 2020 | 17
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PLANADVISER - January/February 2020
Table of Contents for the Digital Edition of PLANADVISER - January/February 2020
Ever Vigilant
Advisers Shine Light on CSR at Work
2020 PLANADVISER Micro Plan Survey
Building Better Engagement
Sharing Ownership
In Touch
Make It Last
Men as Advocates
MEPs and PEPs
Aset Allocation Models
PLANADVISER - January/February 2020 - Cover1
PLANADVISER - January/February 2020 - Cover2
PLANADVISER - January/February 2020 - 1
PLANADVISER - January/February 2020 - 2
PLANADVISER - January/February 2020 - 3
PLANADVISER - January/February 2020 - 4
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PLANADVISER - January/February 2020 - 13
PLANADVISER - January/February 2020 - 14
PLANADVISER - January/February 2020 - 15
PLANADVISER - January/February 2020 - Ever Vigilant
PLANADVISER - January/February 2020 - 17
PLANADVISER - January/February 2020 - 18
PLANADVISER - January/February 2020 - 19
PLANADVISER - January/February 2020 - Advisers Shine Light on CSR at Work
PLANADVISER - January/February 2020 - 21
PLANADVISER - January/February 2020 - 22
PLANADVISER - January/February 2020 - 23
PLANADVISER - January/February 2020 - 2020 PLANADVISER Micro Plan Survey
PLANADVISER - January/February 2020 - 25
PLANADVISER - January/February 2020 - 26
PLANADVISER - January/February 2020 - 27
PLANADVISER - January/February 2020 - 28
PLANADVISER - January/February 2020 - 29
PLANADVISER - January/February 2020 - 30
PLANADVISER - January/February 2020 - 31
PLANADVISER - January/February 2020 - Building Better Engagement
PLANADVISER - January/February 2020 - 33
PLANADVISER - January/February 2020 - 34
PLANADVISER - January/February 2020 - 35
PLANADVISER - January/February 2020 - Sharing Ownership
PLANADVISER - January/February 2020 - 37
PLANADVISER - January/February 2020 - In Touch
PLANADVISER - January/February 2020 - 39
PLANADVISER - January/February 2020 - Make It Last
PLANADVISER - January/February 2020 - 41
PLANADVISER - January/February 2020 - 42
PLANADVISER - January/February 2020 - 43
PLANADVISER - January/February 2020 - Men as Advocates
PLANADVISER - January/February 2020 - 45
PLANADVISER - January/February 2020 - MEPs and PEPs
PLANADVISER - January/February 2020 - Aset Allocation Models
PLANADVISER - January/February 2020 - 48
PLANADVISER - January/February 2020 - Cover3
PLANADVISER - January/February 2020 - Cover4
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