FACTA's Identity Theft Provisions and Financial Institutions

Report Summary

FACTA's Identity Theft Provisions and Financial Institutions

Institutions comply with FACTA, but procedures largely untested.

Boston, MA, May 9, 2005 – According to a new Impact Note from Aite Group, LLC, compliance with the existing provisions of FACTA by banks is high. The Impact Note examines key provisions of FACTA, particularly the ones that impact the way banks must respond to identity theft. "But the pieces still being looked at by the rulemakers are a question mark," says Eva Weber, regulatory analyst for Aite Group and author of FACTA’s Identity Theft Provisions and Financial Institutions.

According to Weber, FACTA compliance is not onerous for banks at this point. "But compliance officers are wary that some of the provisions not yet defined by the rulemakers could require them to commit significant time and resources to FACTA," Weber says. "And many compliance officers say their spending on compliance with FACTA’s identity theft provisions is out of proportion to identity theft costs, given the low incidence rate of true identity theft."

This is a 13-page Impact Note. Clients of Aite Group's Fraud & AML service can download the report.

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