ID Insight Helps Financial Services Companies Comply with New Identity Theft Regulations
The Fair and Accurate Credit Transaction Act imposes stricter guidelines for protecting consumer information.
St. Paul, Minn., June 24, 2004 — A new service from ID Insight Inc. will help financial services companies comply with recently enacted Fair and Accurate Credit Transaction Act (FACTA) guidelines aimed at preventing identity theft, according to Adam Elliott and Bob Clark, the company's founders.
FACTA was signed into law by President George W. Bush on December 4, 2003. The legislation provides all Americans fair and equal access to credit and more protection against the devastating consequences of identity theft.
"Identity theft is a crime that has eluded the financial services industry for years," said Adam Elliott, co-founder and president of ID Insight. "Our new solution is based on research showing that nearly every case of identity theft involves an address manipulation."
"Criminals can pretty easily steal a consumer's name, Social Security Number, driver's license number and birth date," said Bob Clark, co-founder and former law enforcement officer. "But for the crime to be complete, these fraudsters need to establish a new mailing address accessible to them, and not to the victim."
The firm's TakeOver InsightSM service will help financial services companies comply with Section 114 of FACTA, which requires address validity assessment in the event of a customer-requested address change. Simply put, Section 114 specifies that if a card issuer receives a request from a customer to change the address on his/her account and within 30 days receives a request for an additional or replacement card for that same account; the card issuer must take steps to notify the customer and assess the validity of the address change.
"Section 114 was written with account takeover in mind. These new FACTA provisions support what we know from research: that it is all about the address," said Elliott. "TakeOver Insightsm will help the financial services industry catch more thieves by identifying address change requests that are out of pattern, inconsistent with other information, or simply do not make sense."
TakeOver InsightSM is based on ID Insight's patent pending Address Differential AnalysisSM - a blend of data and analytics designed to detect identity theft. The analysis produces the AD ScoreSM, which predicts the likelihood of fraud using a numerical rating system. The score directs fraud investigators to high-risk transactions, allowing them to act immediately to protect consumers and prevent serious losses.
ID Insight Inc. is a privately held company dedicated to preventing identity theft in new and existing financial accounts. Its management team has extensive expertise in law enforcement, financial services, data management, analytic modeling, and marketing and information technology. ID Insight is based in St. Paul, Minn. and serves financial services clients nationwide.
# # #
Media Contacts:
- Brian Bellmont for ID Insight, (952) 233-0428,
