PLANADVISER - Spring 2023 - 38
Case Sensitive
Who's to Blame?
Lack of precedent in cyberfraud suits makes some answers unclear
IF A PLAN PARTICIPANT is a victim of cyberfraud, this
raises a host of questions. Who provides the compensation?
Who is a fiduciary in such circumstances? And what
cybersecurity standards are effectively required of recordkeepers
under the Employee Retirement Income Security
Act? A recently filed lawsuit seeks to answer these questions
and may establish some needed precedent for judging
who is liable when cyberfraud occurs: The recordkeeper?
The plan? Both? Another?
In recent years, there has been an increased threat of
retirement plan account takeovers and fraud as criminals
actively target retirement savings. To protect plan
accounts, experts say, there needs to be more awareness
of the threat, as well as the implementation of sufficient
controls to protect retirement assets.
Awareness is growing, it seems, as consumers express
concern for the protection of their personal information.
A recent survey by analytics and software provider FICO
found that the top consideration for opening a new financial
account was " good fraud protection, " chosen by 33.1%
of respondents, followed by " ease of use " and then " good
value for the money. "
" Increased personalization means we all need to view
cybersecurity as a responsibility, " says Ben Rizzuto, a retirement
director at Janus Henderson Investors in Denver.
" Recordkeepers need to have technology and training
in place. Plan sponsors and advisers need to have good
processes, including [for] hiring and reviewing service
providers along with educating participants on the importance
of cybersecurity. "
The Case
A year ago July, Paula Disberry filed a legal complaint alleging
that her employer-sponsored retirement account, totaling
approximately $750,000, had been stolen by fraudsters.
The plan sponsor, Colgate-Palmolive, and the recordkeeper,
Alight, have decided to defend the case beyond
the motion to dismiss. This could lead to a decision on the
merits-a first for a cyberfraud case of this size, according
to Mark Boyko, an ERISA attorney and partner in Bailey
Glasser LLC in St. Louis.
Disberry was employed by Colgate-Palmolive from
December 1993 to March 2004. She moved from England
to South Africa in 2008 and updated her mailing address
again in 2016. She tried to access her retirement account
in August 2020, but her login credentials were denied. That
38 planadviser.com | Spring 2023 | Participants
Art by OYOW
http://www.planadviser.com
PLANADVISER - Spring 2023
Table of Contents for the Digital Edition of PLANADVISER - Spring 2023
A Step in a New Direction
PLANADVISER Adviser Value Survey
DB Summit
What Participants Need
Advanced Offerings
Expanding the Adviser Remit
The Long Goodbye
Missed Opportunities
How to Avoid Fee Conflicts
Who’s to Blame?
PLANADVISER - Spring 2023 - C1
PLANADVISER - Spring 2023 - C2
PLANADVISER - Spring 2023 - 1
PLANADVISER - Spring 2023 - 2
PLANADVISER - Spring 2023 - 3
PLANADVISER - Spring 2023 - 4
PLANADVISER - Spring 2023 - 5
PLANADVISER - Spring 2023 - 6
PLANADVISER - Spring 2023 - 7
PLANADVISER - Spring 2023 - 8
PLANADVISER - Spring 2023 - 9
PLANADVISER - Spring 2023 - 10
PLANADVISER - Spring 2023 - 11
PLANADVISER - Spring 2023 - 12
PLANADVISER - Spring 2023 - 13
PLANADVISER - Spring 2023 - A Step in a New Direction
PLANADVISER - Spring 2023 - 15
PLANADVISER - Spring 2023 - 16
PLANADVISER - Spring 2023 - 17
PLANADVISER - Spring 2023 - PLANADVISER Adviser Value Survey
PLANADVISER - Spring 2023 - 19
PLANADVISER - Spring 2023 - 20
PLANADVISER - Spring 2023 - 21
PLANADVISER - Spring 2023 - 22
PLANADVISER - Spring 2023 - 23
PLANADVISER - Spring 2023 - DB Summit
PLANADVISER - Spring 2023 - 25
PLANADVISER - Spring 2023 - What Participants Need
PLANADVISER - Spring 2023 - 27
PLANADVISER - Spring 2023 - 28
PLANADVISER - Spring 2023 - 29
PLANADVISER - Spring 2023 - Advanced Offerings
PLANADVISER - Spring 2023 - 31
PLANADVISER - Spring 2023 - Expanding the Adviser Remit
PLANADVISER - Spring 2023 - The Long Goodbye
PLANADVISER - Spring 2023 - Missed Opportunities
PLANADVISER - Spring 2023 - 35
PLANADVISER - Spring 2023 - How to Avoid Fee Conflicts
PLANADVISER - Spring 2023 - 37
PLANADVISER - Spring 2023 - Who’s to Blame?
PLANADVISER - Spring 2023 - 39
PLANADVISER - Spring 2023 - 40
PLANADVISER - Spring 2023 - C3
PLANADVISER - Spring 2023 - C4
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