When I started back in the 401(k) business in 1998, everything was done by paper and telephone. Distribution requests were mailed or faxed. Investment changes were taken over the phone. Beneficiary designations were signed in ink and stored in filing cabinets. If someone wanted to steal retirement money, they needed forged signatures, physical access to documents, and a willingness to commit oldfashioned fraud. It was cumbersome, risky, and not easily scalable. Cybersecurity wasn’t a concern, not because we were ahead of the curve, but because the curve hadn’t been invented yet. It took years before TPAs even launched websites, and even longer before participants were allowed to make transactions online. Early systems were limited and slow, and most changes still required human intervention. Efficiency meant a quicker fax or a shorter hold time on the phone.
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