Identity Theft Red Flags Rule Service
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The Federal Trade Commission (FTC) and other federally financed regulatory agencies have recently published their final rules and guidelines for regulating the fraudulent attempt to use private information without authority. The new regulations implemented Section 114 (Red Flag Guidelines) and Section 315 (Reconciling Address Discrepancies) of the Fair and Accurate Credit Transaction Act (FACTA).
The final rule became effective on January 1, 2008, and requires financial institutions and creditors to develop and implement an Identity Theft Prevention Program for combating identity theft by November 1, 2008.
Who Must Comply
The Identity Theft Red Flags Rule applies to any covered financial institution, credit and debit card issuers, users of consumer reports, or creditor that:
- Collects and uses consumer confidential personal information
- Interacts with a credit reporting bureau
- Maintains “covered” accounts for individuals and/or businesses
An Identity Theft Program
The Identity Theft Prevention Program must include reasonable policies and procedures for detecting, preventing, and mitigating Identity Theft. The regulations require an institution to have:
- An established, written Identity Theft Prevention Program
- Policies and procedures
- Initial Risk Assessment
- Regular compliance reporting
- Oversight of third-party service providers
- Mandatory staff training
- The program reviewed periodically and updated to reflect any changes
Foundstone’s Identity Theft Red Flags Solution
Foundstone Professional Services offers five services to assist you in achieving compliance:
- Data Flow Analysis
- Preliminary Gap Analysis
- Risk Assessment
- Policies and Procedures Development
- Identity Theft Prevention Program Development
Take the Steps Toward Compliance
Meeting the Identity Theft Red Flags Rule requirements could mean additional resources. But with the help of Foundstone Professional Services, compliance will lead to a distinctly controlled environment, yielding the addition of several security controls within an organization.
Contact us today to get a head start on meeting the Identity Theft Red Flags Rule.
