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Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

Fall 2004

New Federal Standards for Preventing ID Theft

The new Fair and Accurate Credit Transactions Act (FACTA) requires financial institutions to take precautions against identity theft, including:

  • Maintaining an ID theft detection program featuring "red flags" of possible fraud and procedures for preventing thefts. "Many banks already use sophisticated software systems to detect fraud but FACTA sets minimum standards for all financial institutions," said Michael Jackson, an Associate Director of the FDIC's Division of Supervision and Consumer Protection.
  • Printing credit and debit card receipts that show no more than the last five digits of the card number or expiration date, a requirement scheduled to go into effect by the end of 2006. This provision applies to any entity that accepts credit and debit cards for transactions.
  • Implementing procedures to prevent an ID thief from fraudulently filing an address change with a consumer's credit or debit card issuer and soon thereafter requesting that an additional card be sent to that new address. "This scheme has been used in the past to make unauthorized charges before the victim is aware that a card has been sent to a fraudulent address," said Jeff Kopchik, an FDIC Senior Policy Analyst.
  • Following new security procedures for disposing of certain confidential information so that the details cannot be picked out of the trash or otherwise obtained by ID thieves.
In addition, the Identity Theft Penalty Enhancement Act of 2004 increases the criminal penalties for ID theft. The law creates a separate crime of "aggravated identity theft" subject to imprisonment and covering numerous violations, including abuses by employees at financial institutions, government agencies or other places where personal information is stored.

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Last Updated 11/19/2004 communications@fdic.gov