LifeLock, a provider of identity theft protection, has created a product specifically to protect 401(k) investors from fraudulent withdrawals and transfers, as well as identity theft to obtain loans, credit or services. Called LifeLock Benefit Elite, the service is available through employers and brokers, and is funded through payroll deduction at a competitive price.
If suspicious activity is detected, LifeLock will send the employee an alert via email, text or phone. In the event that an employee becomes a victim of identity theft, LifeLock will spend up to $1 million to hire the necessary lawyers, accountants and investigators to help with recovery, with the insurance provided by State National Insurance Company.
According to Javelin Strategy & Research, criminals stole $16 billion from 12.7 million Americans through identify theft in 2014.