ID Theft Red Flags Training
The National Credit Union Administration (NCUA), Federal Trade Commission (FTC) and other financial
institution regulators issued joint guidance requiring each financial institution or creditor to develop
and implement a written ldentity Theft Prevention Program to detect, prevent, and mitigate identity theft in connection ...
...with the opening of certain accounts or certain existing accounts. The implementing rules also require credit and debit card issuers to assess the validity of notifications of changes of address under certain circumstances. Summarily, the joint rules provide guidance regarding reasonable policies and procedures that will help identify "red flags," which are patterns, practices, or activities that indicate the possible risk of identity theft,
along with rules requiring financial institutions and other creditors to implement the guidelines.
The guidelines list a number of"red flags” including:
- The existence of fraud alerts
- Altered and inconsistent information
- Account use that fits a pattern of fraud
- Notifications of unauthorized charges or fraudulent account charges Attempts to access accounts by unauthorized users
The rules allow for a risk-based, flexible approach that requires financial institutions and creditors to develop a program that is appropriate to the size and complexity of the institution, as well as the nature and scope of its activities.