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These guidelines, derived from the Identity
Theft Red Flags and Address Discrepancies under the Fair and Accurate
Credit Transactions Act of 2003 were developed as examples of red flags.
Many of the Red Flag items are easily addressed
through identity theft detection and fraud prevention products that can
be appended to your credit reports. Credit Technologies Red Flag
Compliance Bundle addresses all of the items
listed in bold.
1) A fraud alert included with a consumer
report.
2) Notice of a credit freeze in response to a request for a consumer
report.
3) A consumer reporting agency providing a notice of address
discrepancy.
4) Unusual credit activity, such as an increased number of accounts
or inquiries.
5) Documents provided for identification appearing altered or forged.
6) Photograph on ID inconsistent with appearance of customer.
7) Information on ID inconsistent with information provided by person
opening account.
8) Information on ID, such as signature, inconsistent with information
on file at financial institution.
9) Application appearing forged or altered or destroyed and reassembled.
10) Information on ID not matching any address in the consumer
report, Social Security number has not been issued or appears on the
Social Security Administration's Death Master File, a file of
information associated with Social Security numbers of those who are
deceased.
11) Lack of correlation between Social Security number range and date
of birth.
12) Personal identifying information associated with known fraud
activity.
13) Suspicious addresses supplied, such as a mail drop or prison, or
phone numbers associated with pagers or answering service.
14) Social Security number provided matching that submitted by another
person opening an account or other customers.
15) An address or phone number matching that supplied by a large number
of applicants.
16) The person opening the account unable to supply identifying
information in response to notification that the application is
incomplete.
17) Personal information inconsistent with information already on file
at financial institution or creditor.
18) Person opening account or customer unable to correctly answer
challenge questions.
19) Shortly after change of address, creditor receiving request for
additional users of account.
20) Most of available credit used for cash advances, jewelry or
electronics, plus customer fails to make first payment.
21) Drastic change in payment patterns, use of available credit or
spending patterns.
22) An account that has been inactive for a lengthy time suddenly
exhibiting unusual activity.
23) Mail sent to customer repeatedly returned as undeliverable
despite ongoing transactions on active account.
24) Financial institution or creditor notified that customer is not
receiving paper account statements.
25)
Financial institution or creditor notified of unauthorized
charges or transactions on customer's account.
26) Financial institution or creditor notified that it has opened a
fraudulent account for a person engaged in identity theft.
Source: Federal Trade Commission
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To learn more about Red Flag compliance,
please visit our Red Flag
Compliance Solutions. |
26 Example Red Flag Rules