[LINK] Internet banking

[stephen@teacher.schools.net.au]

Hello all,

Here's an interesting story re online banking ..

http://news.com.au/0,4780,1263651%255E462,00.html

The Sunday Times (W.A.)
Online Banking Practices Questioned
By Graham Mason 
01oct00

BANKING practices are being questioned after a 13-year-old Perth boy was able to transfer $1200 he did not have into an Internet bank account.

The parents of the boy are concerned because he was able to open the account with Internet bank ING Direct without their permission. 

He logged on to the Internet, opened an account, signed the authority and later accidentally transferred $1200 from his National Australia Bank savings account into his new ING account – thinking it was $1.20. 

The boy's parents, who want to remain anonymous, did not know about the incident until a week later when they received a telephone call from NAB telling them his account was $1200 overdrawn. 

"He only had about $3 in his account so we don't know how he was able to transfer $1200," the mother said. 

"The biggest concern is the ease with which a child can open an account and transfer money without needing parental permission. Surely ING has some moral obligation." 

When the boy's father contacted ING and demanded the $1200 be returned, the bank initially could not find the money. 

When it was located, he was then told that his 13-year-old son was the only person with the authority to order the return of the money..

Australian Consumer Affairs spokeswoman Louise Petschler described the incident as outrageous. 

"The situation should not be so simple for children to open an account and transfer money that does not exist," she said. "It raises concerns about Internet banking and the lack of checks and controls in place." 

ING Direct general manager Bas Lichter said customers did not have to provide identification for a credit check when opening an ING account. "Because we don't accept cash and we don't give out cash, we operate under different regulations." he said. 

Cheers all ..

Stephen Loosley
Vermont Secondary College
stephen@teacher.schools.net.au
http://www.teacher.schools.net.au/