Countdown to Compliance: First Data Agreements Aid FACTA Compliance
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DENVER (October 20, 2008) – The Nov. 1, 2008 compliance deadline for U.S. financial institutions and creditors to comply with the identify theft prevention requirements outlined in the Fair and Accurate Credit Transactions Act of 2003 (FACTA) fast approaches. Only one-third of U.S. banks are expected to meet the deadline according to a September 2008 TowerGroup report.
As companies work to meet the deadline, electronic commerce and payments leader First Data has signed agreements with ID Insight and Compliance Coach to facilitate customer compliance with the identity theft prevention requirements, commonly known as “Red Flag Rules.” First Data also has issued a white paper that outlines FACTA compliance, the threats of identity theft, and best practices in reducing identity fraud. It explores identity theft prevention as an opportunity to strengthen customer trust. To access the full white paper, visit www.firstdata.com/about/whitepapers.htm.
Financial institutions and creditors that implement an enterprise-wide, end-to-end automated solution can position themselves for current and future compliance while saving money and increasing efficiency, according to Gartner. First Data offers a full suite of solutions that companies can use to support a comprehensive identity theft protection program throughout the customer life cycle, including:
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Verifying applicant data
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Analyzing address changes
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Recognizing transactions that don’t fit typical customer spending patterns
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Contacting customers via text message, e-mail, voice or letter
First Data will enhance the capabilities of its SafeID AuthenticationSM Platform by becoming a reseller of ID Insight’s Safe2ChangeSM address-risk scoring solution. First Data will rebrand Safe2Change as the SafeID Address ScoreSM and integrate the new capabilities into its SafeID Platform, a hosted and flexible suite of multi-factor authentication solutions that helps businesses confirm the identification of customers and potential customers.
First Data also will license access to ID Insight’s AddressWatchSM database. Both Safe2Change and the database help customers detect and reduce address-related fraud and comply with Red Flag Rules while speeding up the ability to process new applications. Customers will be able to access the information through their existing First Data customer interface. ID Insight provides next-generation verification, authentication, and fraud solutions to financial services companies, credit issuers, retailers, online merchants and wireless providers nationwide.
First Data also has an agreement with Compliance Coach to market its CompliancePal software solution. First Data customers can now access CompliancePal, a web-based application that helps financial institutions and creditors comply with FACTA requirements. Customers, particularly smaller institutions without dedicated compliance teams, can answer a series of questions and receive a risk assessment, recommended red flag detection and response procedures, and a written identity theft prevention program complete with training materials. The system also creates the status report to reassess the program and back-up documentation for audits. Customers can access the system through the First Data Web site at http://www.firstdata.com/product_solutions/risk_management/compliancepal.htm.
About ID Insight
ID Insight, the innovator in Access-Point Intelligence, knows more about people and their access points — physical addresses, phone numbers and other points where fraud occurs — than any other identity-fraud risk-assessment company. Based in Northfield, Minn., the company combines its massive collection of data on people and access points with patent-pending analytics to help companies prevent fraud, reduce costs and capture more business. ID Insight provides next-generation verification, authentication, and fraud solutions to financial services companies, credit issuers, retailers, online merchants and wireless providers nationwide. For more information, visit www.idinsight.com.
About Compliance Coach
Compliance Coach Inc., is a leading provider of automated regulatory compliance solutions to the financial services industry. Compliance Coach provides risk assessment software, e-learning and other tools to enable compliance with applicable laws and regulations. Its products and services are supported by an in-house team of nationally recognized legal, compliance and technology experts. CompliancePal is the company’s latest revolutionary web-based software that uses a unique five step system to enable compliance with the Red Flags Rule to be quicker and easier. The company is privately held and venture capital backed by top 10 banks such as Wells Fargo, Bank of America & Citigroup. For further information, visit http://www.compliancecoach.com.
About First Data
First Data is a global technology leader in information commerce. The company processes transaction data of all kinds, harnesses the power of that data and delivers innovations in secure infrastructure, intelligence and insight for its customers. With operations in 37 countries, First Data serves more than 5.4 million merchant locations and more than 2,000 card issuers and their customers. It powers the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2.1 million ATM and retail locations. Through First Data's centers of excellence, such as security, analytics, customer loyalty and mobile payments, it offers data-driven commerce solutions for customers around the globe. For more information, visit www.firstdata.com.
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Media Contact:
- Christa Goeson, First Data, 303-967-5169, Christa.goeson@firstdata.com
- Brian Bellmont for ID Insight, (952) 233-0428,
