Solutions | Red Flags/Identity Theft Challenge

The Red Flags/Identity Theft Challenge

The Red Flag provisions of the Fair and Accurate Credit Transactions (FACT) ACT take effect on Nov. 1, 2008. These provisions are intended to help consumers fight the growing crime of identity theft. All financial institutions and other creditors with "covered accounts" including consumer loans and deposit accounts need to comply.

Each financial institution that holds any consumer account or other account for which there is a reasonably foreseeable risk of identity theft, is required to develop and implement an Identity Theft Prevention Program for combating identity theft in connection with new and existing accounts. The Program must include reasonable policies and procedures for detecting, preventing and mitigating identity theft and enable a financial institution to:

• Identify relevant patterns, practices and specific forms of activity that are "red flags" signaling possible identity theft and incorporate those red flags into the program;
• Detect red flags that have been incorporated into the program;
• Respond appropriately to any red flags that are detected to prevent and mitigate identity theft; and
• Ensure the program is updated periodically to reflect changes in risks from identity theft.

To meet these regulatory requirements, technology can help facilitate a rapid program deployment including program design, program documentation, customer identification, ongoing assessment, account monitoring and reporting.

Through the use of a comprehensive CIP software solution, like Wiz Sentri: RiskID, existing BSA/AML tests can be easily leveraged to meet Red Flag requirements for detection, investigation and reporting simultaneously. In addition to identity theft red flag detection, ongoing monitoring of accounts and employee activity can be facilitated through Wiz Sentri: Anti-Fraud. This system monitors all account and employee activity in real-time and provides automated alerts on ID theft activities such as account beneficiary, address or name changes that may be of a suspicious nature.

Together, Wiz Sentri: RiskID and Wiz Sentri: Anti-Fraud combine to form our Wiz Sentri: Red Flags solution. To learn more about Wiz Sentri: Red Flags, please click on a link on the right.