Cyber | Risks Revealed

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... 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.





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