Recent class action lawsuits over data breaches highlight the growing legal risks that retirement plan administrators and sponsors face. In a Law 360 Expert Analysis article, Carol Buckmann addresses how plan administrators and sponsors are increasingly exposed to legal action when participant data is compromised.
Participants in the lawsuits are pursuing various state and federal claims, including emotional distress, invasion of privacy, and compensation for time spent managing the breach, in addition to potential ERISA claims.
In her article, Carol offers practical advice for developing robust cybersecurity strategies, including collaborating with experts, following Department of Labor best practices, training employees to recognize phishing, using multifactor authentication and ensuring third-party providers undergo regular cybersecurity audits.
“Cybersecurity policies help demonstrate to auditors that those in charge of cybersecurity take their responsibilities seriously,” Carol writes.
Insurance coverage also plays a crucial role in protecting against the financial fallout of a data breach. Carol notes that plan fiduciaries should review their current insurance policies and assess whether they have the appropriate coverage for breach-related incidents.
.Read Carol’s article for a detailed analysis of how plan administrators can protect their participants and mitigate legal exposure amid increasing cybersecurity threats.cle for a detailed analysis of how plan administrators can protect their participants and mitigate legal exposure amid increasing cybersecurity threats.