The 26 Red Flags

Following is a list of the 26 red flags identified for financial institutions in the interagency Identity Theft Red Flags Rule. Institutions must comply with this rule by Nov. 1.
A fraud alert included with a consumer report.
Notice of a credit freeze in response to a request for a consumer report.
A consumer reporting agency providing a notice of address discrepancy.
Unusual credit activity, such as an increased number of accounts or inquiries.
Documents provided for identification appearing altered or forged.
Photograph on ID inconsistent with appearance of customer.
Information on ID inconsistent with information provided by person opening account.
Information on ID, such as signature, inconsistent with information on file at financial institution.
Application appearing forged or altered or destroyed and reassembled.
Information on ID not matching any address in the consumer report, Social Security number has not been issued or appears on the Social Security Administration's Death Master File.
Lack of correlation between Social Security number range and date of birth.
Personal identifying information associated with known fraud activity.
Suspicious addresses supplied, such as a mail drop or prison, or phone numbers associated with pagers or answering service.
Social Security number provided matching that submitted by another person opening an account or other customers.
An address or phone number matching that supplied by a large number of applicants.
The person opening the account unable to supply identifying information in response to notification that the application is incomplete.
Personal information inconsistent with information already on file at financial institution or creditor.
Person opening account or customer unable to correctly answer challenge questions.
Shortly after change of address, creditor receiving request for additional users of account.
Most of available credit used for cash advances, jewelry or electronics, plus customer fails to make first payment.
Drastic change in payment patterns, use of available credit or spending patterns.
An account that has been inactive for a lengthy time suddenly exhibits unusual activity.
Mail sent to customer repeatedly returned as undeliverable despite ongoing transactions on active account.
Financial institution or creditor notified that customer is not receiving paper account statements.
Financial institution or creditor notified of unauthorized charges or transactions on customer's account.
Financial institution or creditor notified that it has opened a fraudulent account for a person engaged in identity theft.

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.




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