FACTA Helps Prevent Identity Theft

Federal protection acts are in place to prevent identify theft from affecting consumers, but they are not foolproof and experts are advising consumers to be vigilant against any vulnerabilities.

One of the federal policies in place to help prevent identity theft is the Fair and Accurate Credit Transactions Act (FACTA). Under this federal law, businesses are required to perform truncation on their electronically printed debit or credit card receipts to prevent too much credit card information from being displayed.

FACTA was enacted in 2003 to help prevent identity theft and credit card fraud and to allow consumers to more closely monitor their credit records for any suspicious charges.

How FACTA Prevents Identity Theft

FACTA was created after Congress noted the significant concern of identity theft and fraud in conjunction with electronic transactions and card receipts. However, even with this law in place, consumers are encouraged to take their own measures to help prevent identity theft including, but limited to:

• Looking for any suspicious activities on taxes, as fraudsters often steal Social Security number to file fake taxes for claims.
• Be vigilant for any signs of missing mails and suspicious charges on their debit or credit card numbers.
• Do not give account information to any person over the phone, unless it is from a reputable business and if the representative confirms they are from said business.
• Limit any information posted on social media profiles, and be sure to take security precautions when using smartphones.
• Consumers should closely analyze their receipt to confirm if they are FACTA compliant.
• Do not sign blank receipts.

Even though there are many steps consumers can take to prevent identity theft and credit card fraud, it is important for businesses to also make sure their transaction programs are FACTA compliant. By not following FACTA rules, businesses could expose consumers to the risk of fraud and identity theft.

FACTA requirements dictate that businesses using electronic receipt printers must print no more or less than the last five digits of the consumer’s debit or credit card on their receipts, and they must completely omit the expiration date. This requirement applies to all electronically printed card receipts from cash registers, self service kiosks, and restaurant checks.

By blocking this personal information from being displayed on the receipt, FACTA is supposed to help prevent identity theft. Furthermore, businesses must follow strict guidelines when securing the information of customers’ accounts.

In addition to the process of truncation, the limitation of card numbers displayed, FACTA also guarantees consumers the right to receive free annual credit reports from the top three credit reporting agencies in the country: Experian, Equifax and Trans Union.

Even with FACTA policy and credit check guarantees, businesses should update their transactions programs to be FACTA compliant if they are not already. If businesses are found to be in FACTA violation, they could face statutory damages between $100 to $1,000 per faulty receipt.

Consumers who find their receipts are not FACTA compliant may be able to file legal action against the company.

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.

Get Started