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Joint Press Release

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Federal Trade Commission
National Credit Union Administration
Office of the Comptroller of the Currency
Office of Thrift Supervision

For immediate release

July 18, 2006

Agencies Propose Rules on Identity Theft Red Flags and Notices of Address
The federal financial institution regulatory agencies and the Federal Trade Commission are
soliciting comments on a Notice of Proposed Rulemaking (NPRM) concerning identity theft
"red flags" and address discrepancies. The NPRM, which has been reviewed and approved
by each of the listed agencies, implements sections 114 and 315 of the Fair and Accurate
Credit Transactions Act of 2003.
The regulations that the agencies are jointly proposing would require each financial
institution and creditor to develop and implement an identity theft prevention program that
includes policies and procedures for detecting, preventing, and mitigating identity theft in
connection with account openings and existing accounts. The proposed regulations include
guidelines listing patterns, practices, and specific forms of activity that should raise a "red
flag" signaling a possible risk of identity theft. Under the proposed regulations, an identity
theft prevention program established by a financial institution or creditor would have to
include policies and procedures for detecting any "red flag" relevant to its operations and
implementing a mitigation strategy appropriate for the level of risk.
The proposed regulations also would require credit and debit card issuers to develop policies
and procedures to assess the validity of a request for a change of address followed closely
by a request for an additional or replacement card.
Additional proposed regulations would require users of consumer reports to develop
reasonable policies and procedures that they must apply when they receive a notice of
address discrepancy from a consumer reporting agency.
Comments on the NPRM are due no later than 60 days after publication in the Federal
Register, which is expected shortly. The NPRM is attached.
Attachment (466 KB PDF)
Media Contacts:
Federal Reserve Deborah Lagomarsino (202) 452-2955
David Barr
(202) 898-6992


Bryan Hubbard
Kevin Petrasic
Cherie Umbel
Claudia Bourne Farrell

(202) 874-5770
(202) 906-6677
(703) 518-6330
(202) 326-2181

2006 Banking and consumer regulatory policy
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Last update: July 18, 2006