Kroll Fraud Solutions Blog – A Dialogue on Data Security

Both the House and Senate have passed the “Red Flag Program Clarification Act of 2010” (S. 3987), which would amend the Fair Credit Reporting Act’s “Red Flags Rule” to clarify which organizations or “creditors” are required to institute an identity theft prevention program. The bill awaits the President’s signature, and will most likely put an end to the speculation as to which types of service providers will be expected to comply with the Red Flags Rule.

The following are a few of the federal laws that apply to consumers. Some states have additional consumer rights laws that apply, so be sure employees understand these as well:

• Identity Theft and Assumption Deterrence Act – Enacted in 1998, this act officially makes identity theft a federal crime.
• Fair Credit Reporting Act (FCRA) – Regulates the collection, dissemination, and use of consumer credit information. The FCRA establishes many consumer rights, including the right to a free credit report, and also defines the procedures for correcting fraudulent or inaccurate information on the report.