More recently, Congress has focused on data security needs, as opposed to privacy-related concerns. If passed, these bills could preempt state law, which would at least have the benefit of creating uniform requirements and protections. Senate have proposed numerous bills regarding data privacy and security over the years. However, the FTC does provide some examples of “reasonable measures”: 1.Įstablishing and complying with policies to: burn, pulverize, or shred papers containing consumer report information so that the information cannot be read or reconstructed 2.ĭestroying or erasing electronic files or media containing consumer report information so that the information cannot be read or reconstructed 3.Ĭonducting due diligence and hiring a document destruction contractor to dispose of material.ĭue diligence steps could include (but are not mandated) reviewing an independent audit of a disposal company’s operations, obtaining and checking company references, or relying on certification by a recognized trade association ( Federal Trade Commission, 2005).Īside from FACTA, the U.S. The law recognizes that “reasonable measures” will vary depending on the sensitivity of the data, the costs and benefits of different disposal methods, and changes in technology. If the identity theft was a result of a cybercrime, then also file an online complaint with the Internet Crime Complaint Center (IC3)-a partnership between the FBI and other agencies-at This law clearly has broader application and suggests that all companies must take care to develop data destruction policies and undertake routine audits to ensure compliance with those policies.
#FAIR AND ACCURATE CREDIT TRANSACTIONS ACT FULL#
Make full use of state-sponsored programs to support victims of identity theft such as Ohio's Identity Theft Verification Passport Program. Ĭlose all the tainted accounts with immediate effect.įile a police report as that will help expedite the reconciliation of any discrepancies in your credit reports.Lodge a complaint with the FTC and use the ID Theft affidavit available on their Web site. The FACT (Fair and Accurate Credit transactions) Act of 2003 which amended the Fair Credit Reporting Act allows individuals to put a fraud alert on their credit reports-Call any of the three major credit reporting bureaus-Equifax, Experian, and TransUnion and ask them to place a fraud alert on your file so that no new credit line is opened in your name without an explicit confirmation from you. You could easily have FACTA-covered data if you've done background checks on your employees and job applicants. FACTA also includes the “red-flag rule” to have systems in place to identify activity that may indicate attempts at fraud and possible identity theft.Īlthough you might think that this act only applies to organizations such as credit bureaus, banks, and retailers, its reach is actually far greater. FACTA also discusses destruction methods, such as shredding of paper documents and destroying/erasing electronic media. The rule says that in regard to consumer information (such as name, Social Security number, address) you must “take reasonable measures to protect against unauthorized access or use of the information.” FACTA is designed to cut down on the incidences of identity theft as a result of valuable consumer information contained in business records. The FACTA is a consumer rights bill that became fully effective June 1, 2005, and is an extension of the Fair Credit Reporting Act ( FCRA). Jaffe, in IT Manager's Handbook (Third Edition), 2012 Fair and Accurate Credit Transactions Act (FACTA)
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