Red Flag Crime Prevention In The Digital Age

One of the most challenging security issues in the Internet Age is identity theft.

To combat identity theft, the Red Flag Rule was created by the Federal Trade Commission (FTC), along with other government agencies including the National Credit Union Administration (NCUA), and requires many businesses and organizations to implement a written identity theft prevention program designed to detect the “red flags” of identity theft; Red Flag compliance for auto dealers also requires that they take steps to prevent the crime, and mitigate its potential damage.

The ultimate goal of the program is straightforward: to help businesses spot suspicious patterns and prevent the costly consequences of identity theft.

Online staff training for Red Flag is available to NCC dealer clients 24/7.

NCC’s trained professionals make Red Flag compliance for auto dealers simpler. NCC’s solution includes a Proof of Identity (POI) report that is run only on the first bureau per customer. POI clearly displays potential ‘red flags’ in an easy-to-read format. If the user is unable to rule out the potential flags, the optional Out-of-Wallet questions may then be used to further assist in detecting a potential case of identity theft.

Red Flag compliance for car dealers is an important, and required, tool in the battle against identity theft. NCC’s Red Flag service also provides clients with a Policy and Procedures manual that can be customized based on your dealership’s individual needs—as required by the FTC. As federal policy changes occur, updates are sent out automatically.

According to the FTC, the Red Flag Rule requires that you train relevant staff only as “necessary.” Staff who have taken fraud prevention training may not need to be re-trained, but the FTC also points out that companies should note that employees at many levels of their organizations can play a key role in identity theft deterrence and detection.

Identity theft has, itself, been identified as one of largest security threats to Americans in the new millennium. Red Flag compliance for auto dealers can—and should—be viewed a critically important element in assisting both businesses and consumers in the battle against the growing risk of identity theft.

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