The Department of Justice recently released information concerning a criminal case involving retirement plan cyberfraud. Two men created online accounts for retirees in the Employees Retirement System of Texas who had not created online accounts for themselves, then redirected deposits to their own bank accounts. The lead criminal was sentenced to eight years in prison and ordered to pay nearly $1 million in restitution and his accomplice was sentenced to 51 months in prison.
The case highlights the importance of using every available security measure to guard against fraud, including encouraging participants to create online accounts even if they don’t expect to access their account online. More information on cybersecurity best practices and the Department of Labor’s recent guidance can be found here.