Financial institutions need to be aware of new regulations under the Fair and Accurate Credit Transactions Act’s (FACTA) Red Flag Regulations.
Under these new regulations, all financial institutions and creditors must have programs in place by November 1, 2008 to prevent and minimize the risk of identity theft. There are three new regulations:
- Financial institutions or creditors must develop and implement an Identity Theft Prevention Program in connection with both new and existing accounts. It must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft.
- Users of consumer reports must respond to Notices of Address Discrepancies that they receive.
- Issuers of debit or credit cards must assess the validity of a change of address if they receive notification of a change of address for a consumer’s debit or credit card account and, within a short period of time afterward they receive a request for an additional or replacement card for the same account.
For more information on these new regulations, please visit http://www.wolterskluwerfs.com/info/redflagrc/