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5 red flags for possible identity theft at work

August 13, 2014

Don’t become a victim of identity theft. Learn what to look for.

Senior Vice President, Specialty Products at Zurich North America

Catherine Mulligan is the Head of Professional Liability for Zurich North America, where she manages... About this expert

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When it comes to identity theft, your credit card isn’t the only item at risk.

According to the Insurance Information Institute, “More than 9 million consumer fraud and identity theft complaints have been filed with federal, state and local law enforcement agencies and private organizations over the five years 2009 to 2013.”

It’s everywhere and in every industry.

But, many industries have chosen to confront this issue head on — like the automotive industry.

The auto industry has a rule, called the Red Flags Rule, which requires dealerships to create a program that allows them to be reasonably certain that the person entering into the credit or lease transaction is who they say they are. The Rule requires dealers to set up a prevention plan to identity, detect, and respond to warning signs — known as “red flags”— that indicate when a customer might be fraudulent.

These are some of the “red flags” that dealerships look for to help ensure identity fraud doesn’t happen in their place of business.

  • Receiving alerts, notifications, or warnings from a consumer- reporting agency.
  • The customer presents suspicious documents.
  • The customer presents suspicious personal identifying information, such as a suspect address.
  • Dealership staff notices unusual use of or suspicious activity within an existing account.
  • You receive notices from customers, victims of identity theft, law enforcement authorities or other businesses about possible identity theft in connection with an existing account.

There are 26 possible red flags. Not all will be relevant to every business, but keeping these warnings front-of-mind could help prevent an issue from arising.

Stay in the know. Protect your business.

For more information, read 7 Steps to Red Flags Rule Compliance.




The information in this publication was compiled from sources believed to be reliable for informational purposes only. All sample policies and procedures herein should serve as a guideline, which you can use to create your own policies and procedures. We trust that you will customize these samples to reflect your own operations and believe that these samples may serve as a helpful platform for this endeavor. Any and all information contained herein is not intended to constitute advice (particularly not legal advice). Accordingly, persons requiring advice should consult independent advisors when developing programs and policies. We do not guarantee the accuracy of this information or any results and further assume no liability in connection with this publication and sample policies and procedures, including any information, methods or safety suggestions contained herein. We undertake no obligation to publicly update or revise any of this information, whether to reflect new information, future developments, events or circumstances or otherwise. Moreover, Zurich reminds you that this cannot be assumed to contain every acceptable safety and compliance procedure or that additional procedures might not be appropriate under the circumstances. The subject matter of this publication is not tied to any specific insurance product nor will adopting these policies and procedures ensure coverage under any insurance policy.

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