Zoot Automates Red-Flag Regs

Zoot, Bozeman, Ariz., has created a set of tools to help consumer credit grantors comply with so-called red-flag regulations. Section 315 and Section 114(B) of the FACT Act mandate that financial institutions manage and reduce the risk of identity theft fraud for customers. Any organizations, including nonlenders such as brokers and auto dealers, that use consumer credit data are required to comply with red-flag regulations by Nov. 1, 2008. To satisfy red-flag requirements, programs must have reasonable policies and procedures for detecting, preventing, and mitigating identity theft; demonstrate the ability to identify relevant patterns of activity considered red flags, including address discrepancies; and undergo periodic updates to reflect changes in risks from identity theft. Zoot's tool automates the process of complying with these regulations. The vendor can be found on the Web at http://www.zootweb.com.