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FDIC Consumer News
Important Update: FDIC Insurance Coverage Increased in Late 2008
In the fall of 2008, Congress temporarily increased the basic FDIC insurance coverage limit from $100,000 to $250,000 through December 31, 2009. In addition, the FDIC simplified the rules for the calculation of deposit insurance coverage for revocable trust deposits, including an expanded definition of the "eligible beneficiaries" for additional insurance coverage. As a result, certain previously published information related to FDIC insurance may not reflect the current insurance coverage. For more information, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342) Monday through Friday, 8:00 a.m. to 8:00 p.m., Eastern Time. For the hearing-impaired, the number is 1-800-925-4618.
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Fall 2004
New Federal Standards for Preventing ID Theft
The new Fair and Accurate Credit Transactions Act (FACTA) requires financial institutions to take precautions against identity theft, including:
- Maintaining an ID theft detection program featuring "red flags" of possible fraud and procedures for preventing thefts. "Many banks already use sophisticated software systems to detect fraud but FACTA sets minimum standards for all financial institutions," said Michael Jackson, an Associate Director of the FDIC's Division of Supervision and Consumer Protection.
- Printing credit and debit card receipts that show no more than the last five digits of the card number or expiration date, a requirement scheduled to go into effect by the end of 2006. This provision applies to any entity that accepts credit and debit cards for transactions.
- Implementing procedures to prevent an ID thief from fraudulently filing an address change with a consumer's credit or debit card issuer and soon thereafter requesting that an additional card be sent to that new address. "This scheme has been used in the past to make unauthorized charges before the victim is aware that a card has been sent to a fraudulent address," said Jeff Kopchik, an FDIC Senior Policy Analyst.
- Following new security procedures for disposing of certain confidential information so that the details cannot be picked out of the trash or otherwise obtained by ID thieves.
In addition, the Identity Theft Penalty Enhancement Act of 2004 increases the criminal penalties for ID theft. The law creates a separate crime of "aggravated identity theft" subject to imprisonment and covering numerous violations, including abuses by employees at financial institutions, government agencies or other places where personal information is stored.
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