Identity theft program for small banks

For even more protection you might also want to put a credit freeze on file with all three credit reporting agencies. A credit freeze means that no creditors like a bank or a business that offers store credit cards can look at your report without your permission. This can make it harder for a criminal to open a new account in your name. You can lift a credit freeze at any time or lift it temporarily so someone you authorize can look at your report.

The length of a freeze also varies by state. Your initial fraud report allows you to get free access to your credit reports from the three credit reporting agencies. Contact each one for instructions on how to get a copy of your report. You can also do this when you set up your credit freeze.

Filing an identity theft report is a two-part process. First you can file a report with the Federal Trade Commission. You can do this in person at your local police precinct or you may be able to do this online. Once you make your report, ask for a copy and record the police report number. Your FTC Identity theft affidavit and your police report together make a complete identity theft report.

This part of the process can mean a lot of phone calls, and in some cases it can take a lot of time. The FTC also has many helpful resources for this part of the process, like check lists and instructions for how to dispute different claims at FTC. At this point you can also place an extended fraud alert on file with each of the credit reporting agencies.

An extended fraud alert is free and lasts for 7 years. It will allow you to get two free copies of your credit report each year so you can keep on top of any new suspicious activity. And one more thing. There are more credit reporting agencies than just the big three. There are also many smaller local or regional ones that could have reports of other fraudulent activity in your name. Getting your life and your credit score back after identity theft can be a challenge. Guarding your personal information carefully, especially your social security number, can help you avoid identity theft in the future.

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Learn more or update your browser. Identity theft. Protect yourself against identity theft Protect yourself against identity theft. Identity ID theft ID theft occurs when someone gains access to your personal information such as name, date of birth and Social Security number SSN , and uses that information to commit fraudulent acts.

Know the warning signs of ID theft so you can act right away: You notice unauthorized activity on your bank account or new accounts on your credit report. You no longer receive bills and bank statements in the mail. ID theft can happen to anyone Taking these steps will help you reduce your risk of ID theft:.

Keep your personal information secure Never give out your personal information via email, text or to an unsolicited caller. Switch to paperless statements. See how to go paperless Shred any documents, such as tax forms, bank statements and medical bills that contain sensitive information. Remember that employees at many levels of your organization can play a key role in identity theft deterrence and detection. In administering your program, monitor the activities of your service providers.

One way to make sure your service providers are taking reasonable steps is to add a provision to your contracts that they have procedures in place to detect red flags and either report them to you or respond appropriately to prevent or mitigate the crime. Other ways to monitor your service providers include giving them a copy of your program, reviewing the red flag policies, or requiring periodic reports about red flags they have detected and their response.

As a result, the Guidelines are flexible about service providers using their own programs as long as they meet the requirements of the Rule. The person responsible for your program should report at least annually to your Board of Directors or a designated senior manager.

The Red Flags Rule is published at 16 C. See also 72 Fed. The preamble B pages 63,, — discusses the purpose, intent, and scope of coverage of the Rule. The text of the FTC rule is at pages 63,, The Rule includes Guidelines B Appendix A, pages 63,, — intended to help businesses develop and maintain a compliance program.

The Supplement to the Guidelines — page 63, — provides a list of examples of red flags for businesses and organizations to consider incorporating into their program. See 16 C. See 15 U. See 12 U. Transaction accounts include checking accounts, negotiable orders of withdrawal accounts, savings deposits subject to automatic transfers, and share draft accounts. See also Regulation B. For purposes of the Red Flags Rule, a creditor —. This Rule may be a helpful starting point in developing your program.

You are here. Red Flags are suspicious patterns or practices, or specific activities that indicate the possibility of identity theft. If you have identified fake IDs as a red flag, for example, you must have procedures to detect possible fake, forged, or altered identification. If you answer: No to all, the Rule does not apply. Yes to one or more, ask: Does my business or organization regularly and in the ordinary course of business: get or use consumer reports in connection with a credit transaction?

Yes to one or more, you are a creditor covered by the Rule. Two categories of accounts are covered: A consumer account for your customers for personal, family, or household purposes that involves or allows multiple payments or transactions. FAQs I review credit reports to screen job applicants.

Does the Rule apply to my business on this basis alone? I am a professional who bills my clients for services at the end of the month. Am I a creditor just because I allow clients to pay later? In my business, I lend money to customers for their purchases. The loans are backed by title to their car.

Risk management examiners trained in information technology IT and the requirements of the Bank Secrecy Act BSA evaluate a number of aspects of a bank's operations that raise identity theft issues. IT examiners are well-qualified to evaluate whether banks are incorporating emerging IT guidance into their Identity Theft Programs and GLBA b Information Security Programs; responsibly overseeing service provider arrangements; and taking action when a security breach occurs.

In addition, IT examiners will consult with BSA examiners during the course of an examination to ensure that the procedures institutions employ to verify the identity of new customers are consistent with existing laws and regulations to prevent financial fraud, including identity theft.

These provisions enable consumers to place alerts on their consumer reports that require users, such as banks, to take additional steps to identify the consumer before new credit is extended.

The procedures also include reviews of institutions' compliance with requirements governing the accuracy of data provided to consumer reporting agencies. These requirements include the blocking of data that may be the result of an identity theft. Compliance examiners are trained in the various requirements of the FCRA and ensure that institutions have effective programs to comply with the identity theft provisions.

Consumers are protected from identity theft through the vigilant enforcement of all the examination programs, including Risk Management, Compliance, IT and BSA. The Fair and Accurate Credit Transactions Act directed the FDIC and other federal agencies to jointly promulgate regulations and guidelines that focus on identity theft "red flags" and customer address discrepancies.

As proposed, 10 the guidelines would require financial institutions and creditors to establish a program to identify patterns, practices, and specific forms of activity that indicate the possible existence of identity theft. The proposed joint regulation would require financial institutions and creditors to establish reasonable policies to implement the guidelines, including a provision requiring debit and credit card issuers to assess the validity of a request for a change of address.

In addition, the agencies proposed joint regulations that provide guidance regarding reasonable policies and procedures that a user of consumer reports must employ when the user receives a notice of address discrepancy. When promulgated in final form, these joint regulations and guidelines will comprise another element of the FDIC's program to prevent and mitigate identity theft.

The FDIC believes that consumers have an important role to play in protecting themselves from identity theft. As identity thieves become more sophisticated, consumers can benefit from accurate, up-to-date information designed to educate them concerning steps they should take to reduce their vulnerability to this type of fraud.

The financial services industry, the FDIC and other federal regulators have made significant efforts to raise consumers' awareness of this type of fraud and what they can do to protect themselves. At each symposium held in Washington, D.