From bankrate.com:
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"The red flag rules push financial institutions to make sure that people are who they say they are -- authenticating identities will be the name of the game. Red flag rules stipulate that financial institutions and creditors establish a written identity theft prevention program to 'detect, prevent and mitigate identity theft in connection with the opening of certain accounts or existing accounts,' according to a Federal Trade Commission report.
The rules offer 26 examples of suspicious behavior that financial institutions and creditors can use as red flag guidelines.
The presentation of altered documents, a suspicious address change, a fraud alert on a credit report and other unusual account activities are potential red flags.
The idea is to prompt banks and creditors to go into 'authentication mode' and determine whether fraudsters are trying to apply for credit in someone else's name or hijack someone else's accounts."
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http://www.bankrate.com/nltrack/news/financial_literacy/identity_theft/red_flag_rules_a1.asp
