Here is an interesting article that discusses a problem that is seen by financial institutions all over the country related to Identity Theft:
BankNet360: How is address-discrepancy identity fraud committed?
Adam Elliot: There are two types of fraud tied to an address. One involves a fraudster obtaining all your personal information, then calling your lender to inform them that you moved and asking for a new card to be sent to the new address. This is known as account takeover, which is virtually undetected in financial institutions. The other form involves a fraudster using your information to open a whole new account or credit line, using an address that’s not yours.
BN360: Is there a way for lenders to check for this?
AE: Credit-scoring agencies let lenders know whether a person is worthy of credit, but they also tell them if there’s a difference in your address. An address discrepancy is the fundamental, leading early-indicator of identity theft.
The 2003 amendment to the Fair Credit Reporting Act (FACTA) will require financial institutions to take some form of action when they discover “address discrepancies”. We appreciate this good article by Banknet360.com and the person being interviewed – Bill Elliott of ID Insight.
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