Banks See Yet Another Rule Change
The FFIEC is a group of federal agencies that work together to regulate financial institutions. Last year the assembly decided that financial institutions must use additional means to confirm the identity of customers who use online banking systems. That rule goes into effect at the end of this year.
The set of regulators has taken further aim on identity theft by developing a list of activities that signal possible identity theft. The pattern of transactions, which I am reluctant to present in this format, raise so-called “red flags.”
Financial institutions will be required to verify the legitimacy of the acts. If the true ownership cannot be established the transaction should be terminated. This shifts some responsibility back to the banking organization, but can be quicker than calling in law enforcement.
Financial groups have 60 days to comment on this proposed rule before it can be enacted.
On the bright side, several software companies have developed systems that look for the questionable deeds and alert appropriate personnel. Hopefully, the cost is affordable for all sizes of providers.
The set of regulators has taken further aim on identity theft by developing a list of activities that signal possible identity theft. The pattern of transactions, which I am reluctant to present in this format, raise so-called “red flags.”
Financial institutions will be required to verify the legitimacy of the acts. If the true ownership cannot be established the transaction should be terminated. This shifts some responsibility back to the banking organization, but can be quicker than calling in law enforcement.
Financial groups have 60 days to comment on this proposed rule before it can be enacted.
On the bright side, several software companies have developed systems that look for the questionable deeds and alert appropriate personnel. Hopefully, the cost is affordable for all sizes of providers.
posted by skgroner | 7:34 AM
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