Enforcement Actions for ID Theft Violation

Answered by:

Question:

Is anyone aware of any federal regulator enforcement actions brought against banks for identity theft violations?

Answer:

I have not seen any. Enforcement actions are growing as the ID thieves themselves are being prosecuted. If a financial institution was involved by virtue of an employee, the regulatory agency over them may enforce some penalty. It wouldn't necessarily be published information. And the reputational penalty could be severe.

There are chances that you will see this with businesses such as CardSystems where a security breach, which they may be penalized for, will lead to ID theft related crimes because of the information exposure.

First published on BankersOnline.com 11/21/2005