Press Release

Former DOL Investigator Launches Antifraud Software for Retirement Plans

Issued by Participant I.D.

Sept. 29, 2023

VENTURA, CA -- Former Department of Labor Investigator and ERISA risk management expert David Donaldson launches Participant I.D., a company that protects against unauthorized fraudulent distributions from retirement plans. Participant I.D. software allows service providers and plan sponsors the ability to verify a participant’s identification within minutes during the distribution process. A participant can be verified by simply using their cell phone. This three-factor authentication process utilizes the latest in biometric facial recognition and government identification verification technologies. Participant I.D. generates a proprietary identity graph scoring algorithm to verify the identity of the participant.

“Fraudulent distributions happen more than the industry would like to admit. The majority of distributions go through very little scrutiny and the fraudsters know it” says Donaldson.

Many Americans’ wealth is in their retirement plan accounts which are not frequently monitored, and in turn, makes the accounts easy targets. “Online accounts usually utilize two-factor authentication that isn’t as secure as previously reported. The most common method used for authentication is SMS messaging and email. These methods are becoming more vulnerable to malware on phones and computers that intercept SMS and email messages and redirects them to the attacker,” explains Donaldson.

Participant I.D. is currently licensing the software to third-party administrators and pooled employer plan providers. An enterprise solution will be available for recordkeepers in November.

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