Identity Theft — Will Your Bank Protect You?

The susceptibility to theft of personal information on computer networks has lead to the growth of identity theft. At particular risk is personal information held by financial institutions which includes many elements of customer identity, such as name, address, social security number, personal identification number and account numbers.   A security breach in a bank's computer network often leads to theft of this information. In an effort to stem identity theft, US federal banking regulators, including the FDIC, Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Federal Reserve Board, have proposed new guidelines for financial institutions in the case of a breach of network security. Under the proposed guidelines, banks and other financial institutions would be required to notify customers (by mail, email, or telephone) if a security breach is detected in their computer network that could lead to identity theft.   Accounts that have been compromised must be flagged and monitored for unusual or suspicious activity. Although the guidelines are voluntary, the US federal banking regulators believe banks will adopt them. More changes may still be made to the guidelines as they are open for public comment until October 14, 2003. For a copy of the proposed guidelines, visit: http://makeashorterlink.com/?C1D7255B5. Summary by:   Sue Diaz