Cybersecurity Risks in Employee Benefit Plans | Protecting 401(k) Participant Accounts

Ellen Alphonso | 05.11.26

3 Key Takeaways

Cyber criminals are increasingly targeting employee benefit plans through phishing attacks, stolen credentials, and identity theft.
Weak administrative controls and limited account security can increase the risk of fraudulent participant distributions.
Multifactor authentication, participant education, and regular access reviews are key steps in reducing cybersecurity and fraud risks within employee benefit plans.

How Plan Sponsors Can Reduce Cybersecurity Risks

Cybersecurity risks and identity theft are growing concerns for employee benefit plans and 401(k) participant accounts. In this edition of the “Ask an EBP Auditor” series, Ellen Alphonso discusses how cyber criminals use phishing attacks, stolen credentials, and social engineering to access retirement accounts and process fraudulent distributions. Learn practical fraud prevention strategies for plan sponsors, including multifactor authentication, participant education, administrative access controls, and cybersecurity best practices for employee benefit plan administration.

Meet the author

Ellen Alphonso

Ellen Alphonso, CPA is a Senior Manager in the firm’s Audit and Assurance practice, bringing a decade of expertise in public accounting. Ellen specializes in employee benefit plan audits and financial statement audit and review services. She has a keen focus on the manufacturing and distribution industries, leveraging her deep understanding of the sector’s unique challenges and opportunities.

Cybersecurity Risks in Employee Benefit Plans | Protecting 401(k) Participant Accounts

How Plan Sponsors Can Reduce Cybersecurity Risks

Meet the author

Ellen Alphonso

Webinar: The New Harsh Realities of Cybercrime – What Executives Must Own and Do Now