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Identity thieves use people’s personal information
to open new accounts and misuse existing accounts, creating
havoc for consumers and businesses. Financial institutions
and creditors will soon be required to implement a program
to detect, prevent and mitigate identity theft.
The Federal Trade Commission (FTC), the federal bank regulatory
agencies, and the National Credit Union Administration (NCUA)
have issued regulations (the Red Flags Rules) requiring financial
institutions and creditors to develop and implement written
identity theft prevention programs, as part of the Fair and
Accurate Credit Transactions (FACT) Act of 2003. The programs
must be in place by November 1, 2008, and must provide for
the identification, detection, and response to patterns, practices,
or specific activities – know as “red flags” – that could
indicate identity theft.
The Red Flags Rules apply to “Financial Institutions”
and “Creditors”
• Financial Institution – include state or national bank,
a state or federal savings and loan association, a mutual
savings bank, a state or federal credit union, or any other
entity that holds a “transaction account” belonging to a consumer.
• Creditors – include finance companies, automobile dealers,
mortgage brokers, utility companies and telecommunications
companies.
Complying with the Red Flags Rules?
Under the Red Flags Rules, financial institutions and creditors
must develop a written program that identifies and detects
signs or – “red flags” – of identity theft. These may include
unusual account activity, fraud alerts on a consumer report
or attempted use of suspicious account application documents.
These red flags fall into five categories”
• Alerts, notifications, or warnings from a consumer reporting
agency;
• Suspicious documents;
• Suspicious personally identifying information;
• Unusual or suspicious activity on an account;
• Notices from customers, victims or identity theft or law
enforcement authorities.
Credit Plus is committed to fight against Fraud and offers
a wide range of solutions for Red Flag-
• Credit Reports with Bureau Fraud Alerts & OFAC Name
Searches
• Stand-alone Reports with verifications from multiple data
sources
• Tax Return & Social Verification direct from the IRS
• Loan Portfolio Risk Assessment
More Information, please call 800-258-3488 option
4.
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Click here for More Information on Red
Flags Rules & Regulations : Download Federal Register
Vol 72, N0.217/Friday 9, November 2007 / Rules and Regulations
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