Question: Do the Red Flag regulations require staff training?
Answer: Yes. Another requirement of the regulations is to increase operational efficiencies while decreasing fraud risk. To ensure this condition is met, financial institutions must engage in anti-fraud employee training. Employees should receive recurring training and updates on a mix of strategies and materials dealing with common red flags.
Currently, there are vendors that provide onsite and web-based training to the employees of financial services companies to guarantee they are well-prepared to identify identity potential fraud. Staff training, when done effectively, goes beyond satisfying the regulation; it increases operational efficiencies while decreasing fraud losses.
Secure Identity Systems is the only company in the U.S. that offers the end-to-end solution for Red Flag compliance including: Initial Risk Assessment, Policies and Procedures Manual, New Account Authentication, Change of Address Verification, Identity Theft Protection with fully managed recovery, On-site Staff Training, and an Anti-Phishing Program. For additional information, please call (615) 377-7661, or e-mail: firstname.lastname@example.org.
First published on BankersOnline.com 8/18/08
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