• Red Flags Rule programs must evaluate address changes for credit card customers.credit card and pen image by PaulPaladin from Fotolia.com
  
  The Fair and Accurate Credit Transaction (FACT) Act of 2003 requires the establishment of procedures to detect identity theft and address discrepancies. The procedures are referred to as the Red Flags Rule. The Federal Reserve System, Federal Deposit Insurance Corporation, Department of the Treasury, National Credit Union Administration and Federal Trade Commission are responsible for developing the Red Flags Rule guidelines. The regulations are defined under Titles 12 and 16 of the Code of Federal Regulations (CFR).
  
  

Federal Reserve System

• The Federal Reserve administers the monetary policy of the United States. It is also responsible for regulating and supervising banks that are under its jurisdiction. The Board of Governors of the Federal Reserve System has issued a set of standard Red Flags Rule auditing procedures. The guidelines require an assessment of how the audited bank handles address discrepancies and mitigates identity theft attempts. If the bank issues credit cards, the examiner must also evaluate the process that is in place for address changes. The Federal Reserve Red Flags Rule regulations are defined under Title 12 CFR Part 222.
  
  

Federal Deposit Insurance Corporation

• The FDIC was created in 1933 to assure depositors that their funds would be safe in federally endorsed banks, even if the bank failed. FDIC member banks are federally endorsed, and up to $250,000 of a depositor's funds are insured. On November 15, 2007, the FDIC issued Financial Institution Letter FIL-100-2007 (Identity Theft Red Flags Interagency Final Regulation and Guidelines). The letter provided Red Flags Rule compliance information for commercial and savings banking institutions that are under the supervision of the FDIC. The FDIC Red Flags Rule regulations are defined under Title 12 CFR Parts 334 and 364.
  
  

Department of the Treasury

• The Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision are included in the joint effort to develop and monitor compliance with the Red Flags Rule. Both agencies are a part of the Department of the Treasury. The OCC examines and regulates national banks. The OTS regulates the thrift industry. The thrift industry services savings and loan accounts. On April 1, 2008, the OTS issued a Red Flags Rule guidelines memo to chief executive officers within its jurisdiction. On June 17, 2008, the OCC conducted a Red Flags Rule telephone and web seminar. The OCC Red Flags Rule regulations are defined under Title 12 CFR Part 41. The OTS Red Flags Rule regulations are defined under Title 12 CFR Part 571.
  
  

National Credit Union Administration

• The NCUA regulates federal credit unions. There are also some state-chartered credit unions that fall under its jurisdiction. NCUA examiners conduct audits to ensure that its credit unions are complying with all mandated regulations. This includes Red Flags Rule regulations. The NCUA has provided a written list of red flags that its examiners are to be aware of during their audits. The NCUA Red Flags Rule regulations are defined under Title 12 CFR Part 717.
  
  

Federal Trade Commission

• The FTC was created in 1913 to prevent unfair trading practices. The services have expanded to include consumer protection. The agency works with the business community to safeguard consumers against identity theft. The FTC has created Red Flags Rule business alerts and how-to guides to financial institutions and businesses that extend credit to consumers. These resources explain the purpose and compliance requirements of the Red Flags Rule. The FTC Red Flags Rule regulations are defined under Title 16 CFR Part 681.