How to secure your 401(k) plan from identity fraud

Your 401(k) might be one of the most valuable things you’ve got. And scammers are well aware of this. So, while you’re focused on building a nest egg, they’re out there coming up with new ways to take it from right under you. The tricky part is that most of us don’t check our 401(k) accounts all that often, which makes it harder to spot unusual charges. And that gives cybercriminals the upper hand. 

This isn’t ideal for anyone, but the risks become even more serious the closer you get to retirement. For one thing, you’ve likely saved up a good sum. But, what’s worse, a single successful attack could leave you without the cushion of your savings at a vulnerable time in life. This doesn’t mean you’re defenseless, though. 

There’s plenty you can do to protect yourself. I’ll go over how criminals gain access to 401(k) accounts, what I personally recommend for locking things down, and what to do if something doesn’t feel right.

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HOW SCAMMERS EXPLOIT YOUR DATA FOR ‘PRE-APPROVED’ RETIREMENT SCAMS

401(k) written on a tablet. (Kurt "CyberGuy" Knutsson)

Common types of 401(k) identity fraud

Contrary to popular belief, criminals don’t always need to “hack” their way in. In fact, 99% of cyberattacks require you to let them in. So, social engineering is a favorite tactic. However, you should also be wary of traditional, less sophisticated attacks.

These are the tactics I see criminals use most often:

• Phishing emails and fake logins. These look legit, but they take you to a fake site designed to steal your login. Criminals may make the message appear to come from your provider or the bank, then steal your information by asking you to “verify” your account.
• Phone scams and robocalls. You may receive calls from the “IRS” or “retirement office” saying there’s a problem with your 401(k). These scams always have a sense of urgency, using fear to pressure you into handing over personal information.
• Loan and withdrawal fraud. Criminals may ask for an early withdrawal or loan and reroute the money to their own account.
• 401(k) rollover scams. Scammers may ask you to move your funds into an individual retirement account (IRA), then try to convince you to make high-risk or worthless investments.
• Business email compromise. Criminals may pose as HR or payroll and ask you to change your contribution settings or give them access to your account.
• AI-powered impersonation. Cybercriminals can use deepfake voice tech and advanced chat tools to trick you into thinking you’re speaking with someone you trust, like your financial advisor or even your spouse.
• Mail theft. One of the easiest ways to steal from your 401(k) is by intercepting rollover checks sent through the mail. All they really need is your address.
• SIM swapping and malware. Scammers can intercept security codes and log in to your account by hijacking your phone number or infecting your device.

A woman viewing her 401(k) info on her laptop. (Kurt "CyberGuy" Knutsson)

How I recommend securing your 401(k)

It comes down to a few small habits to maintain your digital hygiene. Most of these focus on keeping your sensitive information private and secure. Data brokers actually collect and sell that information, making it easier for scammers to target you, things like your contact details, employment history, address, date of birth, and more. These companies have even been caught intentionally selling scammers data belonging to elders (who, unsurprisingly, later fell victim to elder fraud). Here’s what I recommend you do to protect yourself from 401(k) scams:

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1) Keep your personal information locked down

Your data is the biggest weapon in a cybercriminal’s arsenal. Taking it away reduces the risk of ever ending up on their radar to begin with. I use a data removal service to handle this part for me. While no service promises to remove all your data from the internet, having a removal service is great if you want to constantly monitor and automate the process of removing your information from hundreds of sites continuously over a longer period of time.

Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting Cyberguy.com/Delete

Get a free scan to find out if your personal information is already out on the web: Cyberguy.com/FreeScan.

2) Use a strong password

Make sure it’s unique (never reuse passwords), at least eight characters, and complex. Try to keep it completely random and use a mix of numbers, symbols, and upper and lower case letters. This makes it much harder to crack. Consider using a password manager, which securely stores and generates complex passwords, reducing the risk of password reuse.

Check out the best expert-reviewed password managers of 2025 at Cyberguy.com/Passwords. 

3) Enable multi-factor authentication (MFA)

If your provider offers this option, it adds an extra layer of security. Check out my top picks for the top multi-factor authentication apps to protect your accounts.

4) Check your 401(k) regularly

I log in about once a month just to see if anything looks off. Many attacks don’t result in obvious signs, so it may be too late to notice them in time unless you’re actively looking.

5) Turn on notifications and keep contact details up to date

Most providers let you enable alerts for logins, withdrawals, and password changes. This way, if anyone does gain access, at least you’ll know.

6) Avoid using public Wi-Fi

If you’re checking your account from a café or airport, cybercriminals can intercept your login credentials or other sensitive information. If it can’t be avoided, make sure to use a good VPN to keep the connection secure.

For the best VPN software, see my expert review of the best VPNs for browsing the web privately on your Windows, Mac, Android & iOS devices at Cyberguy.com/VPN.

A woman viewing her 401(k) info on her laptop. (Kurt "CyberGuy" Knutsson)

If you suspect 401(k) fraud, act fast

Speed is everything when it comes to financial fraud. These steps can help stop the damage and improve your chances of recovery:

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1) Contact your plan provider immediately

Call your 401(k) provider and request a freeze or lock on the account to prevent further activity.

2) Notify your employer or plan administrator

If your retirement plan is through your job, loop in HR or your plan administrator right away. They may be able to escalate your case faster.

3) Report the fraud to the government

File a complaint at IdentityTheft.gov and contact the Federal Trade Commission (FTC). If you lost money, also report it to your local police department.

4) Freeze or flag your credit

Place a fraud alert or credit freeze with the major credit bureaus-Equifax, Experian, and TransUnion. This helps prevent further identity theft or loan fraud.

5) Document every detail

Write down everything you know while it’s still fresh-dates, suspicious activity, phone calls, emails, and names of people you spoke with. This information will be critical during any investigation.

6) Check related accounts

If your 401(k) was compromised, check your bank accounts, credit cards, and other investment accounts for signs of suspicious activity.

7) Change all related passwords

Immediately change the login credentials for your 401(k), email, and any accounts connected to it. Use strong, unique passwords and enable multi-factor authentication.

8) Watch for follow-up scams

Fraudsters may try again, posing as recovery services or investigators. Be cautious of anyone who contacts you unsolicited about the fraud.

The faster you move, the better your chances of mitigating the damage (and maybe even getting some of it reversed).

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Kurt’s key takeaways

Your 401(k) should be building your future, not funding a scammer’s payday. While most people check their retirement accounts less often than their email, that’s exactly what cybercriminals count on. They’re hoping you’ll let your guard down. The good news? You have more control than you think. By locking down your personal info, checking your account regularly, and setting up the right alerts, you can stay one step ahead. It takes just a few small habits to protect one of your biggest financial assets. Don’t wait until something goes wrong. A little attention now could save you everything later.

If someone drained your 401(k) tomorrow, how long would it take you to notice? Let us know by writing to us at Cyberguy.com/Contact.

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