{"id":8682,"date":"2026-05-01T16:01:59","date_gmt":"2026-05-01T20:01:59","guid":{"rendered":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=8682"},"modified":"2026-05-01T16:01:59","modified_gmt":"2026-05-01T20:01:59","slug":"your-participants-arent-stupid-theyre-being-targeted","status":"publish","type":"post","link":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=8682","title":{"rendered":"Your Participants Aren\u2019t Stupid\u2014They\u2019re Being Targeted"},"content":{"rendered":"
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There\u2019s a dangerous assumption in the retirement plan world: that people who fall for scams somehow weren\u2019t paying attention. That they should have known better.<\/p>\n

That\u2019s nonsense.<\/p>\n

A 58-year-old woman in Michigan recently lost part of her 401(k) after being approached on WhatsApp about a cryptocurrency investment. She moved money out of her retirement account, scanned a QR code, and just like that\u2014it was gone.<\/p>\n

You read that and think, \u201cHow does that happen?\u201d<\/p>\n

It happens because scammers have gotten very, very good.<\/p>\n

They don\u2019t come in looking like villains. They look like opportunity. They show fake gains. They build trust. Sometimes they even let you \u201cwithdraw\u201d small amounts early so it feels real. Then they go in for the kill\u2014what\u2019s often called \u201cpig butchering.\u201d They fatten you up before they take everything.<\/p>\n

And here\u2019s the part plan sponsors need to understand: your participants are targets.<\/p>\n

Not just retirees. Not just the unsophisticated. Everyone.<\/p>\n

Because 401(k) plans have become one of the largest pools of accessible wealth in the country. And now, with easier distributions, rollovers, and digital access, it\u2019s never been easier to move that money\u2014sometimes with just a few clicks.<\/p>\n

That\u2019s where education comes in.<\/p>\n

Not the kind of \u201ceducation\u201d providers love to sell\u2014webinars no one attends and emails no one reads. Real education. Repetition. Warnings about scams. Clear messaging that no legitimate investment requires urgency, secrecy, or QR codes sent over messaging apps.<\/p>\n

And plan sponsors need to be paying attention. If participants are suddenly taking large distributions, asking about crypto rollovers, or moving money in unusual ways\u2014that\u2019s not just a transaction. That could be a red flag.<\/p>\n

We spend so much time worrying about fees and fund performance. Meanwhile, someone is trying to steal the entire account.<\/p>\n

Fiduciary responsibility doesn\u2019t end at the investment lineup. It extends to protecting participants from risks they don\u2019t even see coming.<\/p>\n

Because the biggest threat to retirement security isn\u2019t the market.<\/p>\n

It\u2019s the person on the other end of the message.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

<\/span><\/p>","protected":false},"excerpt":{"rendered":"

There\u2019s a dangerous assumption in the retirement plan world: that people who fall for scams somehow weren\u2019t paying attention. That they should have known better. That\u2019s nonsense. A 58-year-old woman in Michigan recently lost part of her 401(k) after being … Continue reading →<\/span><\/a><\/p>\n

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