I notice that some (many?) banks allow new customers to open new accounts online. Is this wise, given the apparent ease with which bad guys seem to be able to get access to personal information (the Choicepoint breach being the prime example).

If someone gets access to your name and SSN, couldn't they simply use that information to open a new online account in your name? Wouldn't it be better to require new customers to appear in person at the bank, and produce several forms of ID to verify identity?

I was a victim of (well, stupidity on my part) fraud recently, I was logging on to a bank's secure website, and a browser window popped up saying that they couldn't verify my user name and password, and asking me to verify a bunch of information on my account, including my ATM card number and PIN. Now, I'm smart enough not to answer a phishing email, but this was a new window from the bank's site, so I figured it was okay. Later I started wondering why they would need my PIN, so I called the bank, they forwarded me to their fraud department, and I was informed that the new browser window was not a legitimate part of their site, and I had been a victim of fraud. They immediately closed my account . . . and then opened a new one for me OVER THE PHONE and transferred my balance into the new account! They even asked if I was still at the address on file, or if not, where would I like my new account info, ATM card, and PIN sent. I didn't even know my account number when I called in, all I had was my social, and they closed an account, opened an account, transferred the balance, and would have done an address change. Needless to say, I've closed my new account at that bank, and have moved all of my accounts to the bank where I work--we're old-fashioned, but our accounts are safer for it.

Heatherdawn brings up an excellent point: Anti-fraud measures have themselves become an angle for fraud attempts. We bankers must be careful, even when we want to help our customers, not to assume that if someone claims to be the victim of fraud, that they actually are the person who was defrauded or that fraud actually took place.

My bank is "old-fashioned" as well. A customer can start the account opening process online, but must visit a physical branch before the account is actually opened.

Our customers can download a loan application or the info needed to open an account, but they must appear in person at a branch with photo i.d. to open the account.