Most Americans Still Skip Basic Cyber Protections

According to a survey by digital security company Iris, 91% of Americans worry about AI threats to their personal data, Iris survey reveals

When questioned about their online security habits, consumers surveyed show a clear disconnect about feelings of safety. Although the vast majority (87%) of consumers reported feeling secure using their internet-connected devices, 85% said they are concerned about their personal devices being hacked, and 88% said they worry about their passwords being compromised.

Iris, powered by Generali Global Assistance Inc., a provider of identity and cyber protection solutions, released the results of its Identity & Cybersecurity Concerns Survey exploring consumer habits and experiences related to digital security. The survey of 1,010 U.S. adults covered how respondents say they manage online safety, their biggest concerns about identity theft and experiences resolving fraud if they have already been victims.

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More than 90% of consumers surveyed said they employ only a handful of recommended identity protection practices, leaving them vulnerable to scammers and fraudsters. The contradiction in these findings, according to Iris, suggests that while people may feel secure, they still recognize significant risks and fall short on prevention.

Respondents to the Iris survey overwhelmingly identified artificial intelligence as a threat to their personal information, with 91% listing it as a concern and 67% extremely or very concerned. Women were disproportionately more likely to see AI as a threat, with 41% of females responding that they are extremely concerned, compared with 32% of male participants.

“While many respondents feel secure using their devices, most only feel ‘somewhat secure,’ revealing an underlying uncertainty. At the same time, most aren’t doing all they can to protect themselves from these threats, reinforcing the urgent need for comprehensive identity theft protection services,” said Paige Schaffer, CEO of Iris, in a statement. “This gap between perception and preparedness leaves consumers increasingly vulnerable in a rapidly evolving threat landscape—particularly with AI enabling cybercriminals to launch more sophisticated, convincing, and large-scale attacks. At the end of the day, consumers really shouldn’t be navigating these risks alone.”

AI is now the third-most-frequently-used technology in financial firms’ operations and processes, according to a Broadridge Financial Solutions report, based on a survey of more than 500 technology and operations professionals in wealth management, capital markets and asset management firms.

Although investment in AI is growing sharply, Broadridge found that cybersecurity technology is still where financial firms are making their biggest tech investments, named by 87% of respondents

The Iris survey of 1,010 U.S. adults was conducted from March 12 through 14, using data weighted to the U.S. census.

DOL Rescinds 2022 Cryptocurrency Guidance for 401(k) Plans

The 2022 compliance assistance bulletin told plan fiduciaries to exercise ‘extreme care’ before adding a cryptocurrency option to a 401(k) plan’s investment menu.

Today, the U.S. Department of Labor’s Employee Benefits Security Administration rescinded a 2022 compliance assistance release directed at plan fiduciaries considering plan investments in cryptocurrencies.

The 2022 guidance, published by the DOL’s Employee Benefits Security Administration, directed plan fiduciaries to exercise “extreme care” before they consider adding a cryptocurrency option to a 401(k) plan’s investment menu for plan participants. In the guidance, EBSA points out, the Employee Retirement Income Security Act of 1974 requires plan fiduciaries to act solely in the financial interests of plan participants and adhere to the standards of professional care in considering investment options for participants in 401(k) plans.

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According to the Department’s release today, this guidance strayed from the requirements of ERISA.

“The Biden administration’s department of labor made a choice to put their thumb on the scale,” said U.S. Secretary of Labor Lori Chavez-DeRemer in a statement. “We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not DC bureaucrats.”

The DOL said that, by rescinding the 2022 guidance, it is “neither endorsing, nor disapproving of, plan fiduciaries who conclude that the inclusion of cryptocurrency in a plan’s investment menu is appropriate.”

At the time of the 2022 guidance, the EBSA position was that cryptocurrencies tend to be too speculative and volatile investments to serve a meaningful purpose in tax-qualified retirement plans. As the release explained, at this stage in their development, cryptocurrencies have been subject to extreme price volatility, which may be due to the many uncertainties associated with valuing these assets. Other issues cited by the EBSA include the speculative conduct of crypto market participants and the security risks demonstrated by widely published incidents of theft and fraud.

In April, Senator Tommy Tuberville, R-Alabama, reintroduced legislation that aims to reverse guidance issued by the Department of Labor’s Employee Benefits Security Administration in 2022 that discourages retirement plans from including cryptocurrency assets or other alternative investments in their offerings.

The Financial Freedom Act would prohibit the secretary of labor “from constraining the range or type of investments that may be offered to participants and beneficiaries of individual retirement accounts who exercise control over the assets in such accounts,” according to a Tuberville statement.

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