Experian has announced that many of its products and services support Red Flag rules compliance, which went into effect January 2008 and require credit-granting institutions to establish reasonable procedures designed to detect and prevent identity theft in connection with their customer accounts.
"Precise ID, the flagship Experian authentication service, will be an effective tool for many institutions seeking to achieve Red Flag Rules compliance," Stan Oliai, senior vice president of Experian's fraud and identity solutions group, said in a statement. "Precise ID incorporates several identity authentication and validation components that can be configured to meet the needs of most organizations."
The Red Flag rules provisions affect almost any business that provides credit or allows payments or transactions by consumers and small businesses. The guidelines set forth in the provisions allow institutions to implement identity theft prevention procedures that suit their business operations. Companies will be able to increase protection practices as needed to meet the Red Flag rules requirements by the time full compliance is required in November.