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Volume 32, Issue 2

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Tuesday, 09 April 2019 14:25

Substantial Support from State Attorneys General on Identity Theft Rules

In February, 31 State Attorneys signed a letter endorsing the identify theft rules and acknowledging the need for more secure authentication practices. OneSpan’s Michael Magrath discusses.

It is not every day that 62 percent of the state Attorneys General collaborate and present a unified response to the federal government. On February 11, 2019 31 AGs signed a letter to Donald Clark, Secretary of the Federal Trade Commission (FTC) in response to the FTC’s December 4 request for comment on the Identity Theft Rules, 16 C.F.R. Part 681 Project No. 188402.

The Identity Theft Rules (“the Rules”), known as the “Red Flags Rule” and the “Card Issuers Rule,” “require financial institutions and some creditors to implement a written identity theft prevention program designed to detect the “red flags” of identity theft in their day-to-day operations, take steps to prevent it and mitigate its damage.” Only these entities have the ability to stop a fraudulent account from being opened at their own place of business or to notify a consumer of a change of address in conjunction with a request for an additional or replacement card, which is a strong indicator that the account may have been taken over by an identity thief.

The AGs note that “the Rules complement the laws of states that have enacted laws requiring entities to develop, implement and maintain reasonable safeguards to protect the security, confidentiality and integrity of personal information.”

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https://www.corporatecomplianceinsights.com/substantial-support-from-state-attorneys-general-on-identity-theft-rules/