Fidelity Unveils Updated Cyber Protocols
Fidelity Investments announced last week new aims to bolster cybersecurity practices.
The company revealed it would begin taking steps to prevent platforms reliant on credential sharing from accessing and taking action in customer accounts held at Fidelity. The firm says this change was made with customers’ best interests and will be added to enhance security and reduce customer data exposure.
Fidelity announced the move in its release after explaining its suspicion behind credential sharing. “Some third-party fintech firms use credential sharing, like username and passwords, to access, manage, and trade within their clients’ employer-sponsored retirement accounts, including those held at the company, without plan sponsor oversight. Credential sharing presents security risks to our customers, particularly when it enables third parties to take high-risk actions, such as executing trades within the accounts.”
The firm says it anticipates the changes to be minimally disruptive to participants. While participants’ login experience will remain unchanged, Fidelity adds they may need to communicate with any outside advisor with whom they work with to ensure account transactions are managed. Intended given accounts may no longer be accessible by advisors via certain third-party platforms as the firm begins this transition, Fidelity notes.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.