As the Federal Trade Commission undertakes a systematic review of all current rules and regulations, the American Bankers Association today offered feedback its identity theft rules. These rules require creditors and financial institutions to identify patterns, practices and activities that might indicate identity theft and to prescribe regulations requiring financial institutions and for creditors to establish reasonable policies and procedures for implementing the guidelines. They also require debit and credit card issuers to validate address changes under certain conditions.
ABA noted the banking industry’s commitment to combating identify theft and highlighted the need for rules that give banks broad flexibility to develop, implement and alter appropriate controls to respond effectively to evolving financial crimes threats. ABA noted that the rules are sufficiently flexible to accommodate these changing identify theft patterns, strategies and innovations in technology and that changes to the rules are not needed at this time.