Greg's Corner

Are thieves targeting your 401k?

We’ve discussed several different forms of bank fraud before. Whether it’s text message scams or phishing attacks to gain your account information, we’ve talked about the myriad of ways that scammers try to empty your bank account. Now, because of all the news that has gotten out about these scams thieves and cyber-crooks have started targeting a new source of income, retirement funds and 401ks. Is your retirement nest egg vulnerable to being cleaned out? Let’s take a look at how the thieves are targeting 401ks and what can be done about them.

According to USA Today, since so many consumers and banks have become wary of the typical scams that are used to attack bank accounts the thieves have turned to attack 401ks. The reasoning behind this is because a lot of people don’t pay close attention to their 401k. In too many cases, consumers will either ignore or discard the statements they receive from their retirement fund broker. Then when they need to check their 401k balance they discover that their fund has been slowly drained. Unlike banks, retirement funds aren’t always willing to help you get your money back.

While the target may be new, the attacks are roughly the same. The thieves use old standards like phishing attacks and weak passwords to gain access to your 401k. In order to prevent these attacks from happening it’s recommended that you review the mailed statements you receive from your fund manager for any suspicious behavior. It’s also recommended that you use a strong password to secure your account with a password that’s not used on any of your other online accounts. Lastly, never click on any links in emails that you receive purporting to be from your 401k manager as they can be used to steal your login information. Instead, always go directly to the 401k website and log in from there to check your account.