November 1st is the deadline for complying with Section 114 of FACTA (Fair and Accurate Transactions Act), also known as the “Red Flag Rules.” For many financial institutions, it is a date that looms all too close, as it means a written plan must be in place for detecting and responding to the red flags that may signal identity theft.
The legislation is an important step forward for victims because it places additional responsibility for detecting this crime squarely on the shoulders of financial institutions and creditors. And it is good news for you as well because by investing resources to become more proactive in handling this problem, your financial institution likely can stem some of the financial losses it might otherwise incur. According to a February 2007 Javelin Identity Fraud Survey Report, nearly $50 billion was lost to identity thieves in 2006, the largest portion of which was absorbed by financial institutions.
Harland Clarke and identity theft industry experts, NXG Strategies, wasted no time in developing solutions to help you comply with the new law. Be sure to check the next issue of Delivering Value for a more in-depth look at the new Red Flag Rules and the solutions we offer that take the worry out of a worst-case scenario.