How Can Businesses Prevent Identity Theft?

The Federal Fair and Accurate Credit Transaction Act (FACTA) was created to help protect consumers from identity theft or credit card fraud.

The federal law mandates merchants follow certain rules in order to protect consumers’ personal information. And there is good reason — becoming a victim of identity theft can have an extremely negative impact on a person’s credit score.

Why is a Credit Score So Important?

A person’s credit score is important because it determines what loans they can qualify for and what the interest rate on that loan will be.  When buying a new home, a person’s credit score will have a big impact on the terms of the person’s mortgage.  A person’s credit score is one of the primary sources lenders use to determine whether or not a person will qualify for a loan.

Why is FACTA Important?

Over the last few decades, with the rise of credit card use and the movement towards a cash-less economy, identity theft has been an ever increasing problem.  In response to this growing issue the Federal government created FACTA to help consumers protect themselves.

FACTA gives consumers the right to obtain a free credit report and receive increased fraud alerts.  FACTA also prevents merchants from using any numbers other than the last 5 digits of a credit card on a transaction receipt, requires proper disposal of consumer reports, and requires victims to be informed of credit card fraud or identity theft.  FACTA also requires merchants not include any portion of the expiration date on the credit card receipt.

After FACTA was passed in 2003 the White House made a statement that FACTA gave consumers unprecedented tools to help fight identity theft and credit card fraud.  But not everyone is a fan of FACTA.  Some people believe that FACTA limits the ability of states to enact their own consumer protection legislation.

How Can Businesses Prevent Identity Theft?

Businesses can help prevent identity theft and credit card fraud by following the rules set out in FACTA.  This includes limiting information included on credit card receipts, informing consumers when their protected personal information has been hacked or stolen, and storing consumer personal information in more secure ways.

FACTA Identity Theft Lawsuits

Consumers who have received a credit card receipt that violates FACTA may be able to bring a lawsuit against the business who printed the receipt.  Claims against the companies will likely allege violations of consumer protection laws.  Successful plaintiffs may receive compensation for the wrongful actions of the businesses.

Deciding to bring a lawsuit is a decision that should be made after weighing all the facts and circumstances of each individual’s case.  An identity theft attorney can advise consumers on whether or not bringing a lawsuit is right for them.

FACTA identity theft lawsuits may be brought as a class action lawsuit.  Class action lawsuits allow the costs of litigation to be spread among all the members.  This can help consumers bring certain types of lawsuits that may not have been economical to bring individually.

Lawsuits like these help to hold businesses accountable to their consumers. It reminds companies that they owe consumers a specific duty of care.

Free FACTA Class Action Lawsuit Investigation

If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.

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