According to Javelin Strategy & Research’s 2020 Identity Fraud Report, digital criminals are targeting the financial services industry and their devastating tactics will negatively impact customers throughout the next 12 months. The study amplifies that the current cyber security strategies of financial institutions are no match for hackers’ advanced technological schemes to quietly and swiftly sneak into consumer accounts. What’s more, based on numerous recent court cases surrounding this topic, 401(K) plans have become glistening targets, including one case where a third-party administrator and a plan custodian counter-sued the plan sponsor for indemnity and contribution claims regarding an alleged cyber breach.
“These findings should be a wake-up call for financial institutions, the payments industry, businesses and consumers across America,” says Krista Tedder, Head of Fraud with Javelin Strategy & Research. “The data is proof of what we’ve long known—the full weight of identity fraud lies not only in counterfeit credit cards and magnetic stripes but in full account takeover and new account fraud.”
The report recommends for customers to embrace a zero-trust contract policy, sign up and pay attention to account alerts, craft stronger password credentials, and update new phone numbers and addresses with their financial institution. Congruently, customers should also secure mobile and online devices by incorporating a screen lock, encrypting data stored on their devices, staying away from public Wi-Fi, and utilizing a VPN and/or anti-malware.
Cyber Liability Insurance is prominent for the prosperous financial future and well-being of your company. A single attack could be costly and devastating to try and solve on your own. Our ERISA bond packages, which include an ERISA Fidelity bond, Fiduciary Liability Insurance and Cyber Liability Insurance, can help protect your company and its employee benefit plan from catastrophic damages to your brand and its valuable assets. Contact us to learn more about our ERISA packages and cyber coverage.