Identity theft rules
Federal regulators are proposing new rules that require banks to draft plans to prevent identity theft. Ashley Milne-Tyte reports.
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CHERYL GLASER: Meanwhile financial regulators are asking for public comments on some new rules they're proposing. The regs would require banks and other institutions to draw up plans for preventing identity theft. Ashley Milne-Tyte has that story.
ASHLEY MILNE-TYTE: Banks are usually liable if a thief goes on a spree with a customers' credit cards. So most already flag potential fraud. Jeff Kopchick is with the FDICa€¦
JEFF KOPCHICK:"One of the things we're asking for comment on is how much would banks have to change or do new?"He says the law's being put in place at the government's insistence.
Nessa Feddis of the American Bankers Association says banks' main concern with a federal law is that it might not appreciate fraudsters' ingenuity. She says flexibility is key.
NESSA FEDDIS:"So that the banks can respond to new types of fraud and use better prevention methods and not be wasting resources on things that have become obsolete and are no longer effective."Banks have 60 days to send comments for regulators' consideration before the new rules are finalized.
I'm Ashley Milne-Tyte for Marketplace.
