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#1996724 - 02/18/15 09:05 PM HELOC transfers via online banking
traveler Offline
100 Club
Joined: May 2010
Posts: 180
Alabama
I have been asked to define the risks over allowing customers to transfer from their HELOCs to their checking accounts via online banking.
Can someone give me some reasons not to do this?

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eBanking / Technology
#1996911 - 02/19/15 05:20 PM Re: HELOC transfers via online banking traveler
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
I think a lot of banks do allow this sort of transfer (unless it's not permitted under state law). My bank permits it.

Downside risks? The ability to make this sort of transfer has been involved in numerous account compromises. Funds get transferred and then wired out of the country before the customer knows what hit him.

If you don't have robust security procedures to detect and block that sort of fraud, the risk of allowing the transfers goes higher. And in today's environment, a call-back verification process won't cut it.
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John S. Burnett
BankersOnline.com
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