Identity Theft Red Flags – Final Rule
The federal financial institution regulatory agencies and the Federal Trade Commission have jointly issued final rules on identity theft “red flags” and address discrepancies as required by the FACT Act of 2003.
The final rules require financial institutions and creditors that hold consumer accounts to develop and implement an Identity Theft Prevention Program. The Program must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft by:
• Identifying relevant patterns, practices, and specific forms of activity that are “red flags” signaling possible identity theft;
• Implementing procedures to detect red flags;
• Responding appropriately when red flags are detected to prevent and mitigate identity theft;
• Updating the program periodically to reflect changing identity theft risks.
The agencies also issued guidelines to assist in developing and implementing a Program, including a supplement that provides examples of red flags.
The final rules also require credit and debit card issuers to develop policies and procedures to validate a request for a change of address that is followed closely by a request for an additional or replacement card. In addition, the final rules require credit report users to develop reasonable policies and procedures to “reconcile” addresses when consumer report contains a notice of address discrepancy.
The final are effective on January 1, 2008, with compliance mandatory by November 1, 2008.
New $5 Bill Unveiled
The U.S. government unveiled a new, more secure design for the $5 bill that will be issued and enter circulation in early 2008. A new $100 bill will follow. This is the first time in history that U.S. paper money has ever been unveiled entirely online.
Similar to recently redesigned $10, $20, and $50 bills, the new $5 bill incorporates improved, easy-to-use security features, making it easier for businesses and consumers to check the new $5 bills they receive and more difficult for counterfeiters to fake. Those security features include:
- Watermarks: Hold the bills up to the light to check for two watermarks on the redesigned $5 bill. A large number “5” watermark is located to the right of the portrait replacing the previous watermark portrait of President Lincoln found on the older design $5 bills. A second watermark—a column of three smaller “5”s—has been added to the new $5 bill design and is positioned to the left of the portrait.
- Security Thread: The embedded security thread runs vertically to the right of the portrait on the redesigned $5 bill. The embedded security thread on the new $5 bill has been moved so that it is in a distinctively different location than the thread on the $100 bill. The letters “USA” followed by the number “5” in an alternating pattern are visible along the thread from both sides of the bill. The thread glows blue when held under ultraviolet light.
- Redesign: The redesign of the $5 bill will also help protect against a method of counterfeiting that bleaches, or removes the ink from, a $5 bill and prints over it to create a fake $100 bill. By eliminating as many similarities as possible between the $5 and $100 denominations, the new design foils counterfeiting and protects U.S. currency users.
Because the $5 bill is heavily used in vending and transit farecard machines, the U.S. government began informing the manufacturers and end-users of those machines about the upcoming new $5 bill more than a year ago, to provide ample time to adjust them to accept the new design.
With the unveiling of the $5 bill’s new look, the U.S. government officially launched the next phase of the public education program that will ensure a smooth transition for the new currency by informing people worldwide about the new design and its security features.
Free educational materials are available to businesses, financial institutions, trade and professional associations, citizen groups and individuals to prepare cash handlers and consumers to recognize the new design and protect themselves against counterfeits. Material is available to order or download in multiple languages at www.moneyfactory.gov/newmoney.
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