The four types of identity theft include medical, criminal, financial and child identity theft. Medical identity theft occurs when individuals identify themselves as another to procure free medical care.

Red Flags are suspicious patterns or practices, or specific activities that indicate the possibility of identity theft. 3. For example, if a customer has to provide some form of identification to open an account with your company, an ID that doesn't look genuine is a “red flag” for your business.

The Red Flags Rule requires that each "financial institution" or "creditor"—which includes most securities firms—implement a written program to detect, prevent and mitigate identity theft in connection with the opening or maintenance of "covered accounts." These include consumer accounts that permit multiple payments ...

Unusual credit activity, such as an increased number of new accounts or inquiries and spending appear in the credit reports. Identification documents provided by the customer appears altered or forged. Photograph on ID card is inconsistent with the appearance of the customer present.

The Five Categories of Red Flags Warnings, alerts, alarms or notifications from a consumer reporting agency. Suspicious documents. Unusual use of, or suspicious activity related to, a covered account. Suspicious personally identifying information, such as a suspicious inconsistency with a last name or address.

Answer 1: Red Flag Rules require businesses that loan customers money, accept payments, or use credit reports to have methods in place to detect and prevent identity theft.

The Red Flags Rule requires specified firms to create a written Identity Theft Prevention Program (ITPP) designed to identify, detect and respond to “red flags”—patterns, practices or specific activities—that could indicate identity theft.