Red Flags Rule

Question 1

Reds Flag Rule

Answer 1

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

Question 2

Scope of the Red Flags Rule?

Answer 2

• 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

Question 3

Identity theft red flags

(examples)

Answer 3

• 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

Question 4

Red Flags Rule was implemented by ___

Answer 4

FACTA