In today’s digital age, identity theft is one of the most serious threats facing both consumers and the financial institutions that serve them. Each day, fraudsters seek new ways to target lenders, mortgage professionals, and financial institutions, all in an effort to exploit personal information for their own gain. The impact of these attacks can be devastating—not just for the individuals whose identities are stolen, but also for the businesses entrusted with protecting that sensitive data.

To combat this growing threat, the Federal Trade Commission (FTC) and other federal regulators created the Red Flags Rule as part of the Fair and Accurate Credit Transactions Act (FACTA). This rule requires financial institutions and creditors—including mortgage loan originators—to develop, implement, and maintain a written Identity Theft Prevention Program, or ITPP.

By the end of this course, participants will be able to:

1. Define identity theft and explain how it impacts consumers, mortgage professionals, and financial institutions.
2. Describe the purpose and requirements of the Red Flags Rule under the Fair and Accurate Credit Transactions Act (FACTA).
3. Identify common “red flags” of identity theft that may arise during mortgage lending and financial transactions.
4. Explain the responsibilities of financial institutions and mortgage professionals in preventing, detecting, and responding to identity theft.
5. Understand the components of an Identity Theft Prevention Program (ITPP) and how it supports compliance with federal regulations.
6. Apply practical strategies for recognizing and responding to potential identity theft risks in day-to-day mortgage or lending operations.
7. Recognize the importance of protecting consumer data and maintaining compliance with federal identity theft prevention requirements.