SEC Adopts Rules Requiring Firms to Flag Identity Theft

Credit card companies, investment advisors and other financial firms will be required to set up programs to flag and deter identity theft, U.S. regulators said Wednesday.

The steps should enable firms to spot evidence of attempts to steal consumers' personal information, according to rules adopted jointly by the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The initiative marks the SEC's first act under Chairman Mary Jo White, who was confirmed by the Senate on Monday and sworn in Wednesday morning.

"These rules are a common-sense response to the growing threat of identity theft to all Americans who invest, save, or borrow money," White said in a press release.

The rules require companies that issue credit or debit cards to take cautionary steps when they receive a request for a new card shortly after they receive a notice of a change of address for the cardholder's account.

The rules, which are expected to take effect later this year, also require financial institutions to train staff and oversee service providers.

The Dodd-Frank Act directed the SEC and CFTC to issue rules governing the protection of customers' personal information at businesses they regulate. The Federal Trade Commission previously had been responsible for enforcing such safeguards at entities supervised by the agencies.