Series 26: Red Flags: Identity Theft

Red Flags: Identity Theft

In 2003 Congress enacted the Fair and Accurate Credit Transactions Act (FACT Act) to reduce identity theft at financial institutions. This act required a group of regulatory agencies to develop and implement written guidelines for detecting and preventing identity theft in customer accounts. They also were asked to suggest regulations that would require each financial institution to establish policies and procedures for implementing the guidelines consistently across the industry. In developing the guidelines, the agencies were required to identify patterns and practices that indicate the possible existence of identity theft (red flags). The guidelines must be updated as often as necessary and must be consistent with the policies and procedures of the USA PATRIOT Act.

Since that time, the Dodd-Frank Wall Street Reform and Consumer Protection Act extended the scope of the FACT Act to the securities industry. Regulation S