Federal regulators Tuesday unveiled proposed rules regarding identity theft.
The news came in a joint announcement from the board of governors of the Federal Reserve System, as well as the Federal Deposit Insurance Corporation, Federal Trade Commission, National Credit Union Administration, Office of the Comptroller of the Currency and Office of Thrift Supervision.
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The agencies all are soliciting comments on the new Notice of Proposed Rulemaking (NPRM) on identity theft “red flags” and address discrepancies. The proposals would affect the implementation of certain sections of the Fair and Accurate Credit Transactions Act of 2003, or FACT Act.
If the proposals are approved, each financial institution and other creditor will be required to develop and implement programs aimed at detecting, preventing and mitigating identity theft. Debit-card issuers will be required to develop policies for assessing the validity of any change of address that was followed by a request for an additional or replacement card. Users of consumer reports will be required to develop “reasonable” policies and procedures to apply when they receive notice of an address discrepancy.
The proposals also include guidelines listing patterns, practices, and activities that should be considered “red flags,” signaling risk of identity theft.
Comments on the proposals must be submitted within 60 days of the NPRM’s publication in the Federal Register, which is expected shortly. The full notice can be viewed at the Federal Register Online.
