Identifying Red Flags

Each financial institution that offers or maintains covered accounts is required to develop and implement a written Identity Theft Prevention Program for the purpose of detecting, preventing and mitigating identity theft. Policies, procedures and processes must be designed to:

  1. Identify red flags;
  2. Detect red flags;
  3. Respond appropriately; and,
  4. Ensure periodic updates to the program.

There are five categories of red flags and one of those is “alerts, notifications or other warnings received from consumer reporting agencies or service providers, such as fraud detection services”. While many credit reporting agencies have tried to help in the red flag identification process by grouping red flags into one area of the report, it’s important to remember, there can still be other red flags present on the report that aren’t singled out.

Kevin explains more in the video.

 

Lending Resources!Published
2025/07/31

Kevin Edwards

Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).

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