Identity Theft Red Flags (FACTA)

The Fair and Accurate Credit Transactions Act of 2003 (FACTA) is a US law that includes provisions to help reduce identity theft. New Red Flag rules (section 114 and 315 of FACTA) require financial institutions to develop and implement an Identity Theft Prevention Program in connection with both new and existing accounts. The Program must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft. The deadline for compliance with the Red Flag Rules was November, 2008.

PhoneFactor’s primary function is to prevent unauthorized access to sensitive data and systems that could be used to perpetrate identity theft. PhoneFactor also provides a unique form of detection. Because the PhoneFactor authentication is generally performed after a correct user name and password have been provided, if a user receives a PhoneFactor call when they are not logging in, it means that their user name and password have been compromised. The user can immediately submit a Fraud Alert from the phone menu, which locks their account and notifies the company’s detection team.