It seems like the Red Flag rules are already helping to curb identity fraud — even though the Federal Trade Commission (FTC) has delayed its official enforcement of these rules.
Research from Javelin Strategy & Research’s Card Issuer’s Safety Scorecard found that that identity theft has dropped by more than half recently.
In the past, fraudsters relied on physical address changes to take over accounts. But thanks to the Red Flag rules, businesses are now required to alert customers whenever they get a change of address request. As a result, this method of fraud has gone way down.
The Javelin Strategy & Research report did warn companies to be extra vigilant for new ways hackers are looking to take over customers’ accounts.
To safeguard your customers from identity fraud, here are two things you can do:
- Ask your IT department to set up alerts to let customers know about suspicious account activity, and
- Offer basic tips on how customers can safeguard themselves from fraud.
Readers, how does your company keep customers’ confidential info safe from hackers? Let us know in the Comments section.
