Identity Theft: Is It Just a FACTA Life?

The Fair and Accurate Credit Transactions Act (FACTA) is a federal consumer-rights law that is intended to lower the risk of identity theft by regulating the way companies handle consumer information.  Although passed in 2003, important implementating regulations have just begun to take effect.

• Identify red flags that may arise and detect those red flags when they occur;
• Respond appropriately to prevent and mitigate identity theft; and
• Ensure that red flags are updated periodically to reflect changes in the methods of identity theft.

According to a recent survey, about half of consumers said they would switch the company they do business with for one that offered better protection against identity theft. Thus, by improving their ability to identify red flags -- and by knowing how to respond if any ared etected -- companies can serve their customers better, increase their customer base and play a valuable role in our government's efforts to limit identity theft.

Posted by David Simon on April 14, 2011 David Simon, a trial and appellate lawyer for 14 years, founded WeComply in 1999. He has created hundreds of CD-ROM and web-based training programs for both lawyers and non-lawyers. David has been a frequent speaker on compliance and employee-training issues and has written articles for ACC Docket, Corporate Counsel magazine, Director's Monthly, and numerous other publications.