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48 | FALL 2020 Fraud alert I n uncertain times, saving for the future can be a source of comfort. But as we move more of our lives online, especially in the age of coronavirus (COVID-19), 401(k) identity theft is a growing concern — one that's likely more at- tractive to bad actors since the recent CARES Act permits early retirement distributions without penalty for those affected by the pandemic. It's vital to take actionable steps to protect yourself — and your future funds. We spoke with Carrie Kerskie, president of identity theft recovery firm Kerskie Group, for the full scoop on how to do just that. Go all-online and check in on your account often. Experts say trading paper statements for online ones is a good first step to beef up your account security. Log into your provider's website, check the box that says you'd prefer to forego paper statements in favor of online ones and set up all available account alerts. "That way you can go in and monitor your balances, you can see if any distributions have been filed [and] you can see if there's been any changes to your account," said Kerskie. To best protect against identity theft, it's important to stay engaged with your account: Log in at least once a month, especially if you only receive quarterly statements. Make the answers to your security questions — and your PIN — something unexpected. While you're at it, make sure you set up all possible security measures on your account, including two- factor authentication and security questions. For the latter, though, the key is to make it something unexpected — a "one-off," said Kerskie, who recalls a client giving her the idea. First, pick someone you know — e.g., your best friend, brother, parent or child — and use their circumstances as your "an- swer key." For instance, if the question is your first pet's name and your answer key was your cousin, you'd choose their first pet as your own answer. That goes for your PIN, too. Choose a four-digit number at random is better protection. Look into identity theft insurance. Identity theft insurance used to primarily serve businesses. Now, it's becoming more readily avail- able for individuals and consumers, said Kerskie. Generally, you can either buy a standalone policy or check to see if it's available as a rider on another policy you have, such as homeowner's insurance. Be sure that the policy specifies that it reim- burses stolen funds and that it includes coverage for funds stolen from retirement accounts, such as 401(k)s. (Some policies still exclude those types of accounts.) If the policy does have stolen funds coverage, then you also need to check the limit on the policy: "Make sure your coverage matches what you have in your accounts," said Kerskie. JEAN CHATZKY is the Director of Education and Editor in Chief of Savvy Money. She is a personal finance expert and best-selling author. To get your own financial checkup with Savvy Money today, visit SavvyMoney.com/AACU. Written with Hayden Field Never heard of 401(k) identity theft? Time to learn and prepare. Here's what it is and how to protect yourself