Federal Agencies Issue 'Red Flags' ID Theft Rule

Several federal agencies published a final rule Nov. 9 directing all financial institutions and creditors that hold consumer account, or any other account for which there is a reasonably foreseeable risk of identity theft, to develop and implement an Identity Theft Prevention Program by Nov. 1, 2008. The rule covers both new and existing accounts. The FDIC, FTC, Federal Reserve, and Treasury are involved.

They call it an identity theft "red flags" rule; it will implement sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003. The President's Identity Theft Task Force has reported that ID theft costs individuals and businesses billions of dollars in losses each year. and there have been numerous high-profile cases that illustrate the danger.

The theft prevention programs must include reasonable policies and procedures for detecting, preventing, and mitigating ID theft and must allow the institution to identify patterns, practices, and specific forms of activity that are "red flags" signaling possible ID theft; detect red flags that have been incorporated into the program; and ensure the program is updated periodically to reflect changes in risks.

In comments submitted before the final rule was issued, consumer groups said the proposed rule gave institutions too much discretion to decide which accounts and red flags to include in their programs and how they would respond to them. Some small financial institutions said they wanted clearer, more structured guidance describing exactly how to develop and implement a program. Most, however, said they are already doing most of what the rule requires. The agencies responded by offering more guidance and by specifying which type of accounts are covered: (1) an account primarily for personal, family, or household purposes, that involves or is designed to permit multiple payments or transactions, or (2) any other account for which there is a reasonably foreseeable risk to customers or the safety and soundness of the financial institution or creditor from ID theft.

Download Center

HTML - No Current Item Deck
  • Free Safety Management Software Demo

    IndustrySafe Safety Management Software helps organizations to improve safety by providing a comprehensive toolset of software modules to help businesses identify trouble spots; reduce claims, lost days, OSHA fines; and more.

  • The Top 5 Safety and Technology Trends to Watch in 2019

    Get the latest on trends you can expect to hear more about in 2019, including continued growth of mobile safety applications, wearable technology, and smart PPE; autonomous vehicles; pending OSHA recordkeeping rulemaking; and increased adoption of international safety standard, ISO 45001.

  • Get the Ultimate Guide to OSHA Recordkeeping

    OSHA’s Form 300A posting deadline is February 1! Are you prepared? To help answer your key recordkeeping questions, IndustrySafe put together this guide with critical compliance information.

  • Safety Training 101

    When it comes to safety training, no matter the industry, there are always questions regarding requirements and certifications. We’ve put together a guide on key safety training topics, requirements for certifications, and answers to common training questions.

  • Conduct EHS Inspections and Audits

    Record and manage your organization’s inspection data with IndustrySafe’s Inspections module. IndustrySafe’s pre-built forms and checklists may be used as is, or can be customized to better suit the needs of your organization.

  • Industry Safe

OH&S Digital Edition

  • OHS Magazine Digital Edition - January 2019

    January 2019

    Featuring:

    • PREVENTING ERRORS
      Production vs. Safety 
    • EMERGENCY SHOWERS & EYEWASH
      Meeting the Requirements for Emergency Equipment
    • CONSTRUCTION SAFETY
      The State of Contractor Safety
    • FOOT PROTECTION
      The Three Keys to Effective Chemical Management
    View This Issue