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Compliance with Federal Trade Commission’s “Red Flag Rule”

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Presentation on theme: "Compliance with Federal Trade Commission’s “Red Flag Rule”"— Presentation transcript:

1 Compliance with Federal Trade Commission’s “Red Flag Rule”

2 Background Identify Theft is one of the fastest growing areas of white collar crime U.S. Congress passed Fair and Accurate Credit Transactions of 2003 (FACT Act) Act charged Federal Trade Commission (FTC) to address identity theft FTC issued “Red Flags Rules”

3 Primarily designed for banks and financial institutions Red Flags Rules requires “financial institutions” and “creditors” that hold “covered accounts” to develop and implement “an identity theft prevention program”

4 Why Lehigh? We meet the criteria because of loan programs, installment payment plans, use of credit reports. For example: ◦Federal Perkins Loans ◦University Loans ◦Bursar’s Office Installment Payment Plans ◦Lehigh credit and/or background checks

5 University systems maintain and communicate confidential personal information, consider for example: W-2’s 1098-T’s Loan Notes Offer Letters Why Lehigh?

6 Implementation of the Program Board of Trustees has approved Lehigh’s Identity Theft Prevention Program Oversight by Peggy Plympton Training appropriate University staff is part of the program New hires will be trained in coordination with Banner training

7 Questions to Consider: What’s a common method used to gain information about someone in order to “steal” their identity? What’s a thief’s common strategy to delay someone from discovering their identity has already been stolen?

8 Answer: Change their address

9 Why are you being trained? You have access to change addresses in BANNER using one of the following forms: 1. SPAIDEN 2. PPAIDEN 3. FOAIDEN 4. APAIDEN

10 Lehigh is already “ahead of the curve” The University has already established policies and procedures that include very good controls to safeguard identity and financial information

11 Purpose of the training To raise your level of awareness To help you maximize the effectiveness of your department’s policies and procedures To make sure your day-to-day practices = your policies and procedures To know what to do if you encounter a red flag

12 Three Key Rules 1) Debit and credit card issuers must develop policies and procedures to assess validity of a request for change of address 2) Users of consumer reports must develop reasonable policies and procedures to apply when they receive notice of an address discrepancy from a consumer reporting agency 3) Financial institutions and creditors holding “covered accounts” must develop and implement a written identity theft prevention program

13 How can you help? Identify relevant “red flags” you may encounter Detect those “red flags” Respond appropriately to detected red flags Update the procedures periodically

14 “Red Flags” that could occur at Lehigh Documents provided for identification appearing altered or forged Photograph on ID inconsistent with appearance of customer Personal information inconsistent with information already on file at Lehigh

15 More red flags: Mail sent to customer repeatedly returned as undeliverable despite being an active account A fraud alert included with a consumer report A consumer reporting agency providing a notice of address discrepancy

16 Making an address change Preferred method of making student address changes is for the individual to make his/her own changes via Banner self-service. See Registrar’s Office website for complete instructions

17 Requests made In-Person Acceptable identity verification: Government issued Picture ID Additional confirming information is required if : Picture ID is issued by non-government organization (ex: employer-issued ID card) OR ID does not include a picture(ex: Social Security Card) NOTE: All requests for change of address must be in writing!

18 Requests made by Email Acceptable by Itself: ◦Email from a “” account Additional Confirmation is Required If: ◦Email is sent from any other email account

19 Requests by Mail or Fax All such requests must be signed. If any question about validity, take additional steps to confirm, for example: Photocopy of driver’s license Copy of utility bill Send sample mail to address to confirm Phone directory Internet directories

20 Requests by Phone No address should be changed without having something in writing from the customer. This is for your protection as well as the customer’s.

21 Red Flags are not Black & White! Before concluding you have an identity theft situation, consider the “big picture”: Did a payment accompany the updated information? How much was the payment? How/who benefited from the payment? Can the individual answer questions only student would know? Have you ever temporarily forgotten some of your personal information?

22 What to Do If You Suspect Identify Theft Delay opening new account Suspend access to an existing account Attempt to contact customer at the last known legitimate address/phone number If you’ve done the above and still suspect identity theft, contact Lehigh Police

23 Why you should be concerned Fines from the government Costs to Lehigh to help mitigate damages Possible lawsuit Damage to Lehigh’s reputation Its the right thing to do!

24 Where to go for more Information Contact Mike King, Bursar See Federal Trade Commission website:

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