Reg V Docket# R-1255 (Red Flags Press Release)

Printer Version - Board of Governors of the Federal Reserve System

Joint Press Release
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Federal Trade Commission
National Credit Union Administration
Office of the Comptroller of the Currency
Office of Thrift Supervision

For immediate
release

October 31,
2007

Agencies Issue Final Rules on Identity Theft Red Flags and Notices of Address Discrepancy
Washington -- The federal financial institution regulatory agencies and the Federal Trade Commission have sent to the
Federal Register for publication final rules on identity theft “red flags” and address discrepancies. The final rules
implement sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003.
According to a report of the President’s Identity Theft Task Force, identity theft (a fraud attempted or committed
using identifying information of another person without authority), results in billions of dollars in losses each year to
individuals and businesses.
The final rules require each financial institution and creditor that holds any consumer account, or other account for
which there is a reasonably foreseeable risk of identity theft, to develop and implement an Identity Theft Prevention
Program (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 or creditor to:
●

Identify relevant patterns, practices, and specific forms of activity that are “red flags” signaling possible
identity theft and incorporate those red flags into theProgram;

●

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.

The agencies also issued guidelines to assist financial institutions and creditors in developing and implementing a
Program, including a supplement that provides examples of red flags.
The final rules also require credit and debit card issuers to develop policies and procedures to assess the validity of a
request for a change of address that is followed closely by a request for an additional or replacement card. In addition,
the final rules require users of consumer reports to develop reasonable policies and procedures to apply when they
receive a notice of address discrepancy from a consumer reporting agency.
The attached final rulemaking is issued by the Board of Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, the Federal Trade Commission, the National Credit Union Administration, the Office of the
Comptroller of the Currency, and the Office of Thrift Supervision. The final rules are effective on January 1, 2008.
Covered financial institutions and creditors must comply with the rules by November 1, 2008.
http://www.federalreserve.gov/newsevents/press/bcreg/20071031a.htm (1 of 2) [1/10/2008 9:53:54 AM]

Printer Version - Board of Governors of the Federal Reserve System

The final rules are attached and will be published shortly.
Federal Register Notice 378 KB PDF | TEXT
Media Contacts:
Federal Reserve Board

Susan Stawick

202-452-2955

FDIC

David Barr

202-898-6992

FTC

Frank Dorman

202-326-2674

NCUA

Cherie Umbel

703-518-6330

OCC

Bryan Hubbard

202-874-5770

OTS

William Ruberry

202-906-6677

http://www.federalreserve.gov/newsevents/press/bcreg/20071031a.htm (2 of 2) [1/10/2008 9:53:54 AM]