Financial institutions and other creditors soon will be under the close eye of the Federal Trade Commission and banking regulators, which are stepping up their scrutiny of how those businesses detect and respond to identity theft.
According to new “Red Flags” rules that went into effect Jan. 1, any organization that handles consumer financial data must not only design and implement policies and procedures that detect possible identity theft, but also must maintain a written policy for how they prevent or mitigate such theft. Covered companies must comply with the new rules by Nov. 1.
The publication of the final rules comes on the heels of a list recently released by the FTC of the top consumer fraud complaints received by the agency last year. For the seventh year in a row, identity theft ranked number one.
The report, “Consumer Fraud and Identity Theft Complaint Data January-December 2007,” shows that of 813,899... To get the full story, subscribe now.
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