What is an Identity Theft Red Flag?
Identity theft is a critical concern in today’s digital age. With the massive amount of personal data and sensitive information available online, it’s no wonder why identity theft has become increasingly prevalent. In an attempt to combat this issue, financial institutions, creditors, and other organizations that handle personal data have begun using a specific tool to recognize and address potential identity theft cases – the identity theft red flag.
Definition of an Identity Theft Red Flag
An identity theft red flag is a circumstance or indicator that may appear in an individual’s dealings with a financial institution or creditor, which could signal that an account may have been taken over or opened by an individual using false or stolen identify. These red flags can vary depending on the specific context and industry, but generally, they entail suspicious behavior or activity patterns.
Types of Identity Theft Red Flags
Here are some common types of red flags that may indicate possible identity theft:
- Suspicious transactions or patterns in account activity
- Identity information or account changes from an unauthorized source
- Disputed transactions or fraud claims
- Failure of an identity verification process, such as a mismatch with a database
- Application information, such as residential address, employment, and income
- Change-of-address forms submitted with unfamiliar or out-of-state PO boxes
Table of Common Red Flags
Here are some specific examples of possible identity theft red flags from the US Federal Trade Commission (FTC):
Financial Activity Red Flags
| Flag | Description |
|---|---|
| Susp. ACH Debits | Repeated, recurring, or large debit amounts from account |
| Odd, sudden, or repetitive | Payment transactions to, from, or through fraudulent accounts |
Address Mismatch Red Flags
| Flag | Description |
|---|---|
| Mismatch Res. & Mail | Inconsistencies or unconfirmed addresses in databases |
| Unf. or No Mail Re: Acc | Mail redirected to unusual or PO BOX addresses |
| New & Unreported Acc | Accounts created without reported changed addresses |
Disguised Identities Red Flags
| Flag | Description |
|---|---|
| Public Records | Records suggest fraudulent IDs, false, or inaccurate info |
| Mismatch Name/Zip | Name, account name, or zip matches known identity theft schemes |
