According to the FTC, The Number One Complaint Is Identity Theft.

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According to the Federal Trade Commission (FTC), for the 12th year in a row, the number one complaint they receive is about identity theft. Identity theft is a rampant problem that is sweeping the world. When your personal information gets into the wrong hands, it wreaks chaos on your personal financial situation. The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) want to do something about identity theft and they are proposing a new law to protect consumers.

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Frank-Dodd Wall Street Law

When you think about, one of the professionals you hand over all of your personal information to is the financial advisor or investment professional that handles your investment and mutual fund accounts. If this information lands in the hands of identity thieves, they have everything they need to open fraudulent accounts under your name and to steal your identity.

In 2010, a law was passed as part of the Frank-Dodd Wall Street law. A provision under this law governs how securities and investment firms, as well as mutual fund companies, handle personal consumer information. Under the law, it gives governing authority to the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to take charge of identity theft problems for consumers investing their money.

Fair Credit Reporting Law

The new identity theft law also brings the Fair Credit Reporting law into play. This particular law governs how consumer credit reporting agencies collect, communicate and use the consumer information they collect. The roll out of the provision under the law that deals with identity theft, the FTC, which has authority over identity theft protection now, issues authority to the SEC and CFTC to handle these issues in an effort to protect the personal information and identities of consumers.

Identity Theft Policies

The new proposed provision under the law requires investment firms and companies to create and implement its own identity theft policies. As part of these policies, the firms have to identify the procedures they will use to detect identity theft, and what steps they will take if identity theft is detected. Another part of the policy requires a regular evaluation and update of the identity theft program for the firm or company.

According to Reuters, the law is not winning a popularity contest. The commissioners of the SEC and CFTC voted on the implementation of the provision behind closed doors. Additionally, the media coverage of the introduction of the new law has been very low key and hush-hush. Additionally, there is no word yet on when the announcement will be made as to whether the provision under the law is a go or a stop.

With identity theft continuing to be a worldwide problem, agencies such as the FTC are asking other agencies to step up and stomp out the problem. The FTC is specifically targeting the investment world by giving agencies such as the SEC and CFTC the authority to oversee the policies and procedures of investment firms and mutual fund companies when it comes to implementing identity theft programs.

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