Banking & Securities Issue Briefing: Identity Theft

16-January-2014 at 16:30:12

Identity theft has become a multi-billion dollar issue that continues to accelerate. Protecting against it has become a multi-million dollar business. A survey conducted by the Federal Trade Commission in 2006 estimated that 8.3 million American consumers became victims of identity theft in 2005. Reported incidents collected by the agency in its annual fraud analysis showed 258,427 cases logged in their databases.

Stepping into this foray is the U.S. Federal Government’s Fair and Accurate Credit Reporting Act and its “Identity Theft Red Flags and Address Discrepancies” provisions. This Act defines specific “Red Flags” that organizations must monitor, act upon and have a documented program in place to address. Some of these items may be addressed by existing policies and procedures, others may be new. Regardless, responding to this is not an option. The joint final rules and guidelines were effective January 1, 2008 with a mandatory compliance date of November 1, 2008.