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.

Published
2025/07/31