Comprehensive Identity Theft Process Now Required of CUs

WASHINGTON – NCUA and banking regulators yesterday instituted new rules that will require all credit unions and banks to adopt comprehensive procedures to prevent and resolve identity theft. The procedures require credit unions or creditors to identify patterns, practices and forms of identity theft "red flags," respond to the red flags to prevent and limit and identity theft, and update the program regularly. The final rules also require credit and debit card issuers to develop policies and procedures to assess the validity of a request for a change of address that is followed closely by a request for an additional or replacement card. In addition, the final rules require users of consumer reports to develop reasonable policies and procedures to apply when they receive a notice of address discrepancy from a consumer reporting agency.