Time Congress Made ERISA Theft Somebody’s Problem?

The WSJ tells us there’s a reluctance on the part of “retirement record keepers” to reimburse a growing number of 401(k) theft victims. We’re told confusion reigns since the federal ERISA consumer protection law pre-dates the Internet and no one seems to know who’s responsible for what. Whereas in days past, such thievery was often traced to relatives, today’s cyberspace is being invaded by third party crooks whose identity is more easily masked. You can almost hear lawyers’ mouths water at the new “need” for the elderly to hire them. It almost sounds like a throw back to the Dark Ages of cyber bank account fraud’s early days only worse…because unlike bank accounts, 401(k)s & the like have no liability limits:

A few “recent court cases in which hundreds of thousands of dollars were allegedly stolen from three people in separate 401(k) plans, highlight the risks to workers & retirees. While record-keepers generally promise to reimburse consumers for such losses, there are no guarantees” they’ll do so for what has become “high valued targets.”

Whoa, Nellie. Preventative measures suggested include monitoring your retirement accounts more often, then, reporting any suspicious activity asap. Better username, password & ID recognition technology is quickly coming on board, too. But, really, Congress? Can you get off your butts, put down the peanuts you’re eating…and update the ERISA law to specifically address this problem before it gets worse…AND make it ANYBODY’s problem but the victimized (& blameless) retiree?

Davd Soul