Responding to Red Flags

February 19, 2009 by Keir Breitenfeld

What to do when you see a Red Flag.

Your Identity Theft Prevention Program should include appropriate responses when you detect a Red Flag. You must assess whether the Red Flag evidences a risk of identity theft. If so, your response must be commensurate with the degree of risk posed. Depending on the level of risk, an appropriate response may include contacting your applicant, not opening a new account or even determining that no response is necessary.