FACTA Compliance Promotes Identity Theft Prevention

Identity theft prevention and data security are the primary priorities of the Fair and Accurate Credit Transactions Act (FACTA), helping consumers shop and interact safely in the market.

To shop safely in today’s market, it helps to know different identity theft prevention measures and different policies in place to help lower the chances of occurrence.

As FACTA is written, it is designed to present enough distinguishable information on a credit card receipt to confirm a transaction but not enough information to be considered harmful if seen by thieves or fraudsters.

Under FACTA, businesses are required to limit the number of card digits presented on electronically printed receipts. No more than the last five digits of the debit or credit card can be shown, with the expiration of the card completely omitted.

With this information in mind, consumers should always check their receipts to see if they comply with FACTA standards to help their chances of identity theft prevention. Debit and credit card receipt should contain the following information:

• Merchant’s Name and Address
• Date of Transaction
• Products or Service Purchased, including Prices and Taxes
• Cardholder’s signature on the Merchant Copy
• Authorization code from Bank or Credit Union that Issued Card
• No more than the last five digits of the card number

Consumers should also be wary of small shops or stands that use handwritten or carbon copy imprinted receipts, as these documents are exempt from FACTA requirements.

The Federal Trade Commission’s Bureau of Consumer Protection states “credit card number on sales receipts are a ‘golden ticket’ for fraudsters and identity thieves.” Consumers should also pay attention to how their receipts are disposed, as identity thieves have been reported to sort through trash to find receipts with enough information for identity theft.

Overview of FACTA Compliance

FACTA was enacted in 2003 by the federal government, to help consumers with identity theft prevention and credit card fraud.

Businesses operating in the United States were given until 2006 to update their receipt printing equipment to meet FACTA compliance. Businesses may not be aware their debit and credit card receipt processing machines are not FACTA compliant, so they should take measures to confirm this and take reports of FACTA violations seriously.

Businesses may face civil penalties and other financial relief from consumers, who may have suffered financial damages due to the alleged FACTA violations. Merchants found liable for willful violation may faces fines as much as $1,000 per violation, or the actual monetary loss from the alleged FACTA violation.

In addition to the stiff FACTA penalties, FACTA also entitles consumers to one free credit report from one of three major credit reporting agencies: Equifax, Experian, and TransUnion. The federal government has identity theft prevention for over 30 different types of identity theft, with many of them involving taxes and children’s identities.

Consumers who may have suffered from FACTA violations may be able to file legal action against the merchants for failing in their efforts for identity theft prevention.

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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