Red Flags Rule Flashcards
1
Q
Reds Flag Rule
A
Establishes that all covered financial institutions and creditors must implement a written identity theft prevention plan, which must be approved by the entity’s board of directors or senior-level management
2
Q
Scope of the Red Flags Rule?
A
- Identify red flags and incorporate them into the plan
- Detect red flags as identified in the plan
- Respond once a red flag is identified in relation to a covered account
- Update the plan periodically
3
Q
Identity theft red flags
(examples)
A
- Fraud alerts on a credit report
- Active duty alerts on a credit report
- Address discrepancies on a credit report
- Inconsistencies in a credit report
- Documents that appear to be altered or forged
- Suspicious identification documents, such as:
- Photos which do not match the person presenting the I.D.
- Identification documents which contradict other identification documents presented
- An application that is incomplete or looks altered, forged, or reassembled after destruction
- Inconsistencies with Social Security Number
- Multiple uses of the same phone number, address, or Social Security Number
- Invalid addresses or P.O. boxes
- Inconsistent information presented by the borrower
- Notification that the borrower is not receiving mail or that there have been unauthorized transactions on the account
4
Q
Red Flags Rule was implemented by ___
A
FACTA