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Examiners Will Look for Extra Steps in FACT Act Compliance: Consultants
By Matt Squire
printFinancial regulatory examiners will be checking that banks are not overly relying on their existing monitoring systems to comply with new federal rules meant to curb identity theft, say consultants. The 2003 Fair and Accurate Credit Transactions Act, or FACT Act, requires that financial institutions implement programs to detect and prevent identity theft, a widespread problem that cost businesses and consumers a total of $15.6 billion in 2006 according the Federal Trade Commission (FTC). Banks, which have until November 1 to comply with the new rules, must develop means to investigate customer address discrepancies and develop programs to detect...
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