WASHINGTON -- The federal financial institution regulatory
agencies and the Federal Trade Commission are soliciting comments on a Notice
of Proposed Rulemaking (NPRM) concerning identity theft red flags and address
discrepancies. The
NPRM, which has been reviewed and approved by each of the listed agencies,
implements sections 114 and 315 of the Fair and Accurate Credit Transactions
Act of 2003.
The regulations that
the agencies are jointly proposing would require each financial institution and
creditor to develop and implement an identity theft prevention program that
includes policies and procedures for detecting, preventing, and mitigating
identity theft in connection with account openings and existing accounts. The proposed regulations include guidelines
listing patterns, practices, and specific forms of activity that should raise a
red flag signaling a possible risk of identity theft. Under the proposed regulations, an identity
theft prevention program established by a financial institution or creditor
would have to include policies and procedures for detecting any red flag
relevant to its operations and implementing a mitigation strategy appropriate
for the level of risk.
The proposed
regulations also would require credit and debit card issuers to develop
policies and procedures to assess the validity of a request for a change of
address followed closely by a request for an additional or replacement card.
Additional proposed regulations would require users of
consumer reports to develop reasonable policies and procedures that they must
apply when they receive a notice of address discrepancy from a consumer
reporting agency.
Comments on the NPRM are due no later than 60 days after
publication in the Federal Register, which is expected shortly. The NPRM is attached.
Related
Links:
-
Federal Register Notice
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Media Contacts:
Federal Reserve Susan
Stawick (202) 452-2955
FDIC David
Barr (202) 898-6992
OCC Bryan Hubbard (202) 874-5770
OTS Kevin Petrasic (202) 906-6677
NCUA Cherie Umbel (703)
518-6330
FTC Claudia Bourne Farrell (202) 326-2181