Theft of 401(k) account balances by cybercriminals or other types of criminals is an actual thing and they will become more and more popular as long as third party administrators (TPAs) fail in their role and don\u2019t use common sense.<\/p>\n\n\n\n
The latest lawsuit by Raymond J. Mandli and Mandli Communications, Inc.\u2014claims that the TPA, American Trust made an unauthorized distribution in the total amount of $124,105 from Mr. Mandli\u2019s plan.<\/p>\n\n\n\n
Apparently, someone called American Trust and requested distribution paperwork from Mr. Mandli\u2019s Plan account. The paperwork was sent to an email address that was not in American Trust\u2019s records as being Mr. Mandli\u2019s email address or by mail to a physical address that was not in American Trust\u2019s records as being Mr. Mandli\u2019s address. That should have been a clue.<\/p>\n\n\n\n
The form was returned and included a \u201cDaytime Phone Number\u201d that was not any phone number that was ever Mr. Mandli\u2019s or Mandli Communications\u2019 phone number and that was not any phone number in American Trust\u2019s records as being Mr. Mandli\u2019s or his company\u2019s phone number. That should have been another clue.<\/p>\n\n\n\n
The withdrawal form for the plan, called for the distribution to be paid by check but the TPA paid via ACH. The person who stole the money, use a voided check with Mr. Mandli\u2019s name on it, the check was #100\u2014which is usually a clue that the bank account is new.<\/p>\n\n\n\n
The TPA returned the money that was withheld for taxes but never retrieved the money from Mr. Mandli. I will certainly be interested to read on American Trust\u2019s answer and see whether a quick settlement was hatched.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" Theft of 401(k) account balances by cybercriminals or other types of criminals is an actual thing and they will become more and more popular as long as third party administrators (TPAs) fail in their role and don\u2019t use common sense. … Continue reading