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Calculating the Expense of Red Flag Regulations Implementation

Question: 
How much can an institution expect to spend on implementing policies and procedures for compliance with Red Flag Regulations?
Answer: 

Depending on the asset size, compliance costs can vary. While on the surface the new Red Flag regulations may seem like yet another exercise in burden shifting, it is in fact a real opportunity for financial institutions to improve customer satisfaction, increase retention and generate additional fee income. According to a new CA Inc. study, only 8 percent of U.S. consumers say financial institutions and other businesses adequately protect their personal data. And a Unisys corporation survey found 50 percent of households would switch banks for better identity protection. By implementing policies and procedures required to make safeguarding a customer's identity a top priority, banks can immediately add value and increase non-interest income.

Secure Identity Systems was initially created to mitigate the risk for financial institutions by identifying growing security threats. Today, SIS serves financial institutions, businesses and families with the most robust products and services available. For more information on Secure Identity Systems, please call 877.304.3349 or visit SecureIdentitySystems.com. Follow Secure Identity System on Facebook and Twitter for security updates and special offers.

First published on 09/29/2008

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