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Part 4: Findings

The FDIC Study generated a considerable amount of interest, discussion, and comment. After reviewing the public comments, further surveying the most recent trends in this area, and researching additional authentication technologies, the FDIC is of the opinion that the findings contained in the Study are sound and supportable.

The Study and Supplement illustrate that identity theft continues to be a growing problem for the industry and consumers. These two publications also show that a wide variety of technologies are available to help mitigate the risk of identity theft. The technologies vary in terms of their maturity, cost, ease of use, and effectiveness. However, many of them have the potential to substantially reduce the level of account hijacking (and other forms of identity theft) currently being experienced. The technologies discussed in this Supplement are for the most part less expensive and more customer friendly than those discussed in the Study and merit consideration as cost-effective ways to address the problem.

Different financial institutions may choose different solutions, or a variety of solutions, based on the complexity of the institution and the nature and scope of its activities. The FDIC does not intend to propose one solution for all, but the evidence examined here and in the Study indicates that more can and should be done to protect the security and confidentiality of sensitive customer information in order to prevent account hijacking.

Thus, the FDIC presents the following updated findings: