To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:
The federal financial institution regulatory agencies and the Federal Trade Commission are soliciting comments on a notice of proposed rulemaking (NPRM) concerning identity theft "red flags" and address discrepancies.
The regulations that the agencies are jointly proposing would require each financial institution and creditor to develop and implement an identity theft prevention program that includes policies and procedures for detecting, preventing, and mitigating identity theft in connection with account openings and existing accounts. Under the proposed regulations, an identity theft prevention program established by a financial institution or creditor would have to include policies and procedures for detecting any "red flag" relevant to its operations and implementing a mitigation strategy appropriate for the level of risk.
The proposed regulations also would require credit and debit card issuers to develop policies and procedures to assess the validity of a request for a change of address followed closely by a request for an additional or replacement card.
Additional proposed regulations would require users of consumer reports to develop reasonable policies and procedures that they must apply when they receive a notice of address discrepancy from a consumer reporting agency.
Comments on the NPRM are due no later than 60 days after publication in the Federal Register.