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

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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
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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
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4
Q

Red Flags Rule was implemented by ___

A

FACTA

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