Released: November 01, 2007

Fed issues rules combating identity theft

Source: Reuters

U.S. financial regulators and the Federal Trade Commission said on Wednesday they will soon publish final rules designed to detect “red flags” when consumers are at risk of identity theft.

“These rules provide consumers with an additional layer of protection by requiring financial institutions and creditors to adopt identity theft prevention programs that apply to all consumer accounts - without exception,” said Federal Reserve Board Governor Randall Kroszner.

These final rules implement two sections of the Fair and Accurate Credit Transactions Act of 2003. Financial institutions will be required to develop a program that shows relevant patterns, practices and specific forms of activity that are “red flags” signaling possible identity theft, the Federal Reserve said.

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