Your employees count on their 401(k) plans to build a secure future—and they trust you to help keep those savings safe. Unfortunately, scammers are becoming more creative, targeting older employees who are closer to retirement and may have larger balances. As an employer, you play an essential role in protecting their financial well-being.
Why You Should Pay Attention
Scammers know where the money is, and older employees with sizable 401(k) accounts are prime targets. Fraudulent withdrawals or hacked accounts can cause a lot of stress—and not just for the employee. It’s on the employer to make sure retirement plans are protected, not only to maintain trust but also to stay on the right side of compliance rules.
What You Can Do to Protect Your 401(k) Plan
Here are some easy steps you can take to stay ahead of potential threats:
Team Up with Your 401(k) Provider
Make sure your plan provider is using top-notch security measures. Multi-factor authentication (MFA) should be standard for online access—no exceptions.
Educate Employees (and Keep It Simple)
Not everyone knows how sophisticated scams have become. Host quick trainings or send reminders about phishing emails and fake calls. Keeping employees in the loop goes a long way toward prevention.
Add a Few Extra Safety Nets for Withdrawals
Set up safeguards, like verifying identity for large or unusual withdrawals. Consider adding alerts so employees are notified if there’s unexpected activity on their accounts.
Encourage Employees to Check Their Accounts Often
The sooner an employee spots suspicious activity, the better. A quick peek at their account from time to time can stop a problem before it snowballs.
Secure Benefits, Secure Employees
Helping your employees feel confident about their financial future isn’t just good business—it’s essential. A secure 401(k) plan boosts employee morale, supports retention, and shows that you’re serious about protecting what matters most to them.
By taking a few proactive steps now, you’ll strengthen your benefits program and stay one step ahead of scammers. That’s a win-win for everyone.