Please tell me about the security and liability issues of opening a depositaccount online as opposed to opening it at the bank branch.
The major difference that affects security is the question of verifying the identity of the new bank customer. Banks are obliged to get certain identification information from customers, and then to reach a reasonable belief that it knows its customers true identity. When customers open accounts in person, the first thing most banks ask to see is the individual's driver's license or other government-issued photo ID. That may not work when a customer opens an account online. Some banks will open the account but not activate it unless the customer brings in an acceptable ID; others will accept a photocopy of such an ID; still others use non-documentary methods for verification. In some cases, depending on what other steps a bank takes to verify identification, the ability to open accounts online could make it easier for the bank to be duped by identity thieves.
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The major difference that affects security is the question of verifying the identity of the new bank customer. Banks are obliged to get certain identification information from customers, and then to reach a reasonable belief that it knows its customers true identity. When customers open accounts in person, the first thing most banks ask to see is the individual's driver's license or other government-issued photo ID. That may not work when a customer opens an account online. Some banks will open the account but not activate it unless the customer brings in an acceptable ID; others will accept a photocopy of such an ID; still others use non-documentary methods for verification. In some cases, depending on what other steps a bank takes to verify identification, the ability to open accounts online could make it easier for the bank to be duped by identity thieves.
