GAO Warns 126 Million US Retirement Savers' Data May Be Shared or Sold

3 articles · Updated · Fox Business · Aug 25

A GAO review found many 401(k) and similar plan participants may have personal data used for marketing or sold to third parties, affecting workers in employer-sponsored plans holding more than $9 trillion.
Among 31 retirement-plan service providers reviewed, 29 either explicitly allowed data sharing or did not say whether participant data could be shared for marketing, and 17 did not limit sales to data brokers or other third parties.
The data employers may pass to outside administrators includes birth dates, Social Security numbers, account numbers and balances—information GAO said could raise the risk of inadvertent exposure or access by bad actors.
GAO urged the Labor Department to clarify what retirement-plan information is private and when providers should need written permission before using or sharing it, while also outlining best practices for participant choice.
The Labor Department said it supports protecting participant information but neither endorsed nor rejected the recommendation, pointing to 2021 cybersecurity guidance and saying it will consider whether more guidance is needed.