FCRA/FACT Act Red Flags

Financial institutions are required to have a written identity theft prevention program that is designed to detect, prevent and mitigate identity theft for covered accounts. An institution’s policies, procedures and processes should provide for:

• Identifying red flags;
• Detecting red flags;
• Responding appropriately; and,
• Ensure periodic updates.

Red Flags are addressed at length in the Interagency Guidelines on Identity Theft Detection, Prevention, and Mitigation (Appendix J) and should be considered and incorporated into an institution’s program.

Kevin explains more in the video.

Video Highlights:

• A red flag is “a pattern, practice or specific activity that indicates the possible existence of identity theft.”
• Five major categories of red flags are identified in Appendix J.
• Red flags should be monitored for suspicious activity as part of your Bank Secrecy Act program.

Published
2023/08/28