Ten months from now, all banks need to be in compliance with Section 114 of the Fair and Accurate Transactions Act, better known as FACTA. The aptly nicknamed Red Flag Rules direct financial institutions and other creditors to formulate written plans to detect and combat identity theft. In response, NXG Strategies has launched a Website to “boil down the requirements of the Red Flag Rules into an easy to access format,” NXG president Scott Smith says in a press release.
The site—www.redflagrules.net—also offers a “look at what a ‘best-in-class solution to Red Flags might include,” adds Smith, along with a guide to selecting a services provider.” A recent visit to the site showed a cogent treatment of the subject matter. “And more is coming,” Smith promises.
Red Flag Rules were put on the fast track when a join task force—bank and credit union regulators, the Federal Reserve Board and the Federal Trade Commission—passed the final rules on October 31. They require organizations that manage customer accounts to hunt for signs of identity theft and act swiftly to protect victims.
Perhaps 2008 will usher in a government task force to curtail easy access to Social Security numbers on so many state and local government Websites, including court microsites. SSNs still pop up online on death certificates, criminal and civil cases, and other documents, despite a federal court ban since 2001. Given the effectiveness of that attempt to restrict access, one wonders about the potential of any flag except one with a skull and crossbones.
