The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) provided 401(k) plan sponsors the option to adopt enhanced plan loan and in-service withdrawal options to help eligible employees offset the impact of COVID-19 on their personal finances. Many clients quickly adopted these new COVID-19 distribution options, thereby permitting eligible employees to withdraw some of their 401(k) funds. With an increased number of COVID-19-related withdrawal requests being processed, the chance of a fraudulent withdrawal request from a non-employee increases. Coincidentally, several well-known companies have recently been victimized by 401(k) cybersecurity breaches. In this webinar, we will review the CARES Act distribution options and analyze several of the recent 401(k) cybersecurity breach cases to better understand fraudulent activity and to identify some cybersecurity and personal liability risk reduction strategies, such as:
- Forming the 401(k) plan committee
- Reviewing service provider agreements
- Determining available insurance coverage
- Confirming service provider security protocols
Questions? Please contact Renee Medema at rmedema@masudafunai.com or 312.245.7500.