IDShield, a leading North American provider of identity monitoring, theft protection, and restoration technology and services for individuals and families, announced a service enhancement that will protect its members from unauthorized electronic fund transfers from their employer-sponsored 401K, retirement, and health savings accounts.
Additionally, the plan increases age of dependents from 23 to 26 years old. The new service enhancement started on January 1st and is included in all current and future plans.
According to recent reports by Investment Company Institute and Devenir respectively, nearly $6 trillion is sitting in employer-sponsored 401K accounts and almost $75 billion in Healthcare Savings Accounts.
With cyber activity following the money and these account values continuing to grow, there is a real need for active monitoring of employer-sponsored accounts. In fact, according to the Investment Advisor Association, 83% of companies that manage 401Ks state that cybersecurity is their biggest compliance concern.
Furthermore, IDShield will cover financial accounts up to their full value. If an IDShield customer becomes a victim of identity theft, IDShield will cover up to $1MM for individual plans, $2MM for family plans, and $1M for each spouse. IDShield will assist in the recovery process with the necessary lawyers, accountants, and in-house licensed private investors.
“Our 401K protection is aimed squarely at what matters to consumers – helping protect their identities and financial future,” said Allen Spence, Director of Product Leadership for IDShield.
“With so many consumers setting up their 401Ks and forgetting about them, they could miss important cues that may indicate potential fraud. Fifty percent of people will experience a form of identity theft this year alone.
“Identity theft typically costs over $400 to resolve and an average 200 hours of your time to recover stolen funds and restore your good name. This enhanced protection will help detect potential fraud and brings attention to the consumer through alerts that something may be amiss.”
The extension from 23 to 26 for the age of dependents gives young adults and their parents time to transition as the dependent moves towards a more independent lifestyle. This change also aligns with the majority of states which recognize dependent children up to age 26.
It’s key for people to remember to practice good security hygiene so they avoid identity theft at all costs. That includes using secure passwords, changing them frequently, avoiding unfamiliar Wi-Fi networks, and being leery of possible phishing emails or suspicious phone calls.
IDShield’s protection policy will continue to provide reimbursement coverage for events related to fraud, forgery, data breaches and stolen identity – all with zero deductibles.