What It Means To You

Identity theft affects financial institutions, businesses, and consumers in different ways. Financial institutions bear the bulk of the costs when identity theft occurs, while consumers experience the frustration of restoring their credit and identity. Businesses can also be affected, either as a small business working out of a home office, or a larger business issuing credit to its customer base.

For Financial Institutions

Because financial institutions are required to have security and risk assessment programs in place, identity theft legislation affects every financial institution in some way. Financial institutions simply need to understand and adapt to these updated regulations and requirements, and make the necessary adjustments to their internal procedures.

New Red Flags Rule priorities will include:

  • Educating employees and customers about the risks of identity theft.
  • Preparing internal operations to implement the identification and response programs for the "red flags" it defines.
  • Identifying needs for new services and resources to integrate into a written program.
  • Communicating with customers to respond to red flags or verify address discrepancies.
  • Incorporating requirements into contracts with service providers who perform activities for covered accounts.
  • Defining roles and responsibilities to document, approve, and maintain its identity theft prevention program.

For Businesses

While identity theft education is primarily targeted to consumers and individuals, businesses are not immune. Financial institutions and creditors may provide identity theft prevention tools and tips for your business and customers.

Here are a few identity theft "Quick Tips" for businesses:

  • Take extra care in protecting your business and customer information if you work out of your home.
  • Assess what rules apply to your business if you issue credit, especially if you are a larger business that uses consumer reports.
  • Maintain procedures to protect and safeguard personally identifiable information you collect for your customers.

For Consumers

Identity theft prevention starts with you. Protect yourself through education. Take time to understand the risks and what steps you can take to detect, prevent, and mitigate the risks of identity theft. Examples include:

  • Learning about identity theft and the primary ways fraudsters get your personally identifiable information.
  • Taking steps to limit the personal information you provide to others and ensure you securely dispose of sensitive information.
  • Learning how to spot the red flags of identity theft and working with your financial institution or creditors.
  • Requesting, reviewing, and correcting your credit report annually.
  • Knowing the processes on how to report suspected fraud on your account.