- According to "What Compliance Looks Like," What 4 basic elements of the Red Flags Rule must one include in their Identity Theft Prevention Program?
- They must include logical policies and measures.
- In the program structural design, it must be able detect and deter red flags identified
- The system should have well outlined counter measures to follow in case of red flag detection.
- The system must be kept up to date to enable new threats detection.2. Who must comply with the Red Flags Rule?
The major complaints of the program are monetary institutions and creditors of diverse companies. 3. What is a financial institution?
A financial institution is a state or countrywide bank, a countrywide or centralized savings and loan organization, a reciprocated savings bank, a federal or state credit organization. Otherwise it can also be someone who directly or ultimately, having a transaction account that belongs to a customer.4. What is a creditor?A creditor is any person who frequently renews, continues or extends credit. It is also a person who repeatedly arranges for the annex, replenishment, or continuance of credit. A creditor can also be an assignee of an original creditor who plays a part in the verdict to renew, extend or prolong credit.5. What is a "covered account?"
This is an account that holds customer’s information in a basis of individual, private or family need that is mandated to permit different varieties of payments. It can also be an account that a monetary institution or a creditor presents or preserves. This is for the reason that there is a sensibly anticipated risk to clients or to the security and unassailability of the monetary institution or creditor from distinctiveness theft. This includes monetary, operational, conformity, repute, or lawsuit risks.6. What staff members must be trained?
The Rule necessitates that a company should train pertinent staff only. Staffs who took fraud preclusion training may not require re-training. Employees at various levels of an institution can play a major role in distinctiveness theft prevention and detection.
7. What are the penalties for non-compliance with the Red Flags Rule?
The FTC is thrilled with implementing the Red Flag Rules. Nonconformity can result in fines of up to $2,500 for every violation, and civil responsibility to the customer for violations.8. List 3 types of Identity Theft?
- Tax-related Identity theft
- Child identity theft
- Medical identity theft
9. What can you do to help fight Identity Theft?
- They should monitor a covered account for substantiation of identity theft
- They should contact the customer
- They should close any existing accounts
- They should reopen an account having a new account number
10. When dealing with credit reports, how many consumer reporting companies are there and what are their phone numbers?
They are three companies.
- Equifax:1-800-685-1111; equifax.com
- Experian: 1-888-397-3742; experian.com
- TransUnion: 1-800-916-8800; transunion.com
