Skip to content
BOL Conferences
Thread Options
#2271040 - 05/31/22 08:03 PM Verification Code for ESIGN in Online Acct Opening
Bankwoman1 Online
Diamond Poster
Joined: Dec 2015
Posts: 1,047
Midwest
Hello! We are getting close to making our online account opening site available to the public. A question was brought up in our last meeting regarding the verification code the customer must enter when agreeing to our ESIGN agreement. The customer must open the agreement to find the verification code which will be used to show they were able to open the document and read through it before agreeing. The question is - how often should this code be updated/changed? There is not a way for the code to be generated by the system each time a customer opens the document, so we have created a document with a code printed on the bottom. We can update the code/document when needed, but the question is, how often should we do this? Would this be something an examiner would look at?

Any help would be appreciated! Thanks!

Return to Top
eBanking / Technology
#2271041 - 05/31/22 08:19 PM Re: Verification Code for ESIGN in Online Acct Opening Bankwoman1
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I'm not sure I'm following. If they agreed to E-sign with the initial account opening then why do you need to send a new code each time you send them an account document compliant with the E-sign agreement?
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2271042 - 05/31/22 08:19 PM Re: Verification Code for ESIGN in Online Acct Opening Bankwoman1
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
We can update the code/document when needed, but the question is, how often should we do this?

No real reason to do so.

Would this be something an examiner would look at?

I highly doubt it. The regulators have been pretty silent on E-Sign compliance.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2271043 - 05/31/22 08:21 PM Re: Verification Code for ESIGN in Online Acct Opening Bankwoman1
Bankwoman1 Online
Diamond Poster
Joined: Dec 2015
Posts: 1,047
Midwest
They haven't agreed to ESIGN. This would be for a new customer or existing customer that chooses to open a new account with us online. They haven't agreed to an ESIGN agreement prior to this, so we require them to agree to it prior to moving forward with the online account opening process.

Return to Top
#2271044 - 05/31/22 08:24 PM Re: Verification Code for ESIGN in Online Acct Opening Bankwoman1
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
OK...I understand now. I personally think the code should be different for each account being opened otherwise I see a potential security risk. Now with that said I'm not aware of any regulatory requirement to do so.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2271049 - 05/31/22 09:03 PM Re: Verification Code for ESIGN in Online Acct Opening Bankwoman1
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Not sure what the security risk might be if all it is used for is to provide proof that someone could open a document that contains a code.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2271054 - 05/31/22 10:13 PM Re: Verification Code for ESIGN in Online Acct Opening Bankwoman1
BrianC Offline
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
I agree, Randy. I'm trying to picture someone being so desperate to get e-statements that they ask someone who previously enrolled to use their code even if they haven't actually opened the test document. I don't see that as an issue, either.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top
#2271060 - 06/01/22 12:34 PM Re: Verification Code for ESIGN in Online Acct Opening Bankwoman1
Bankwoman1 Online
Diamond Poster
Joined: Dec 2015
Posts: 1,047
Midwest
Thank you all for your input! I appreciate the information. I also checked with our outside reviewer and he suggested updating the code periodically with the frequency depending on the volume of accounts being opened. The more accounts opened, the more often it should be updated. However, he did say he saw no problem with how it was being done.

I agree, I don't see how it could be risk factor, however, I am fine with updating it periodically.

Thanks again for the help - it is always appreciated!

Return to Top
#2271088 - 06/01/22 05:47 PM Re: Verification Code for ESIGN in Online Acct Opening Bankwoman1
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
My thoughts were more toward this being a 2 part authentication code. If it is just to show they were able to open the document then I would agree there wouldn't be a security risk.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2271090 - 06/01/22 06:24 PM Re: Verification Code for ESIGN in Online Acct Opening Dan Persfull
Bankwoman1 Online
Diamond Poster
Joined: Dec 2015
Posts: 1,047
Midwest
Thank you Dan. I appreciate your input. smile

Return to Top
#2271112 - 06/02/22 01:38 AM Re: Verification Code for ESIGN in Online Acct Opening Bankwoman1
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
I agree with the "non an issue" conclusion. The only time this code could become a risk issue would be if you're in court defending the written delivery of the federal disclosures covered by your service agreement / consent form. The customer's claiming s/he never got them...because you used an undisclosed e-delivery method to which the customer had not consented. In your defense, you will produce the text of your ESIGN pre-consent disclosures, and then walk the court through your demonstration. Soon, it will be obvious that your system could not flag any account for e-delivery unless the proper code was returned during signup.
_________________________
...gone fishing.

Return to Top

Moderator:  Andy_Z