Fair and Accurate Credit Transactions Act
Identity theft — the unauthorized use of the identifying information of another person to commit or attempt a fraud — is a serious problem for businesses and consumers. The Fair and Accurate Credit Transactions Act (FACTA) is a federal consumer-rights law intended to lower the risk of identity theft by regulating the way organizations handle consumer information.
FACTA requires companies to have an Identity-Theft Prevention Program and to train employees who handle consumer data to recognize and identify "red flags" — patterns, practices or activities that indicate the possible existence of identity theft. The training must also enable these employees to —
Detect red flags when they occur;
Respond appropriately to prevent and mitigate identity theft; and
Ensure that red flags are updated periodically to reflect changes in the methods of identity theft.
The five categories of red flags under FACTA include —
Warnings from consumer reporting agencies;
Suspicious personal identifying information;
Suspicious accounts or unusual use of an account; and
Notice or alerts of possible identity theft from customers, law enforcement or other persons.
FACTA applies to companies of all sizes that maintain or service personal accounts for which there is a foreseeable risk of identity theft. Every company that handles consumer data should be alert for the red flags that apply to its business.
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For your convenience, ACC has compiled the following key resources to assist you in your compliance efforts.
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This check card is a printable resource with practical advice for the dos and don'ts of the Fair and Accurate Credit Transactions Act (FACTA).
This QuickCounsel will review federal and state privacy and security laws as well as offer brief guidance on compliance efforts.
An overview of the FACTA including pertinent rules and additional resources.
This article from Venable LLP focuses on risk assessment and what you need to be aware of when dealing with the theft of your association's identity.
This document from the Federal Trade Commission, discusses how to remedy the effects of identity theft. Useful telephone numbers, and general contacts are included in this piece
The Federal Trade Commission is publishing in final form a number of documents that it are required to issue by the Fair Credit Reporting Act (FCRA), which was significantly amended by the recently ...
This article explains whether your nonprofit is covered by the rule, what you must do if it is covered, and how the FTC may enforce the rule.
An article reviewing the President's Identity Theft Task Force. Includes an explanation of the identity theft problem, a strategy to combat identity theft, and the texts of specific laws addressing ...
Wolters Kluwer Law & Business
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