The Department of the Treasury, along with several other agencies, has issued a proposed rule that will require financial institutions and creditors to establish a program to reduce identity theft. Under the proposed rule, financial institutions and creditors must develop policies and procedures to prevent identity theft from occurring. The program, according to the proposed rule, must be appropriate to the size and complexity of the company and must take into account the nature and scope of its activities. Those companies falling under the regulation would have to identify red flags that are relevant to detecting possible identity theft; verify the identity of people opening accounts; mitigate the risk of identity theft commensurate with the degree of risk posed; and devise training programs for employees. Read the entire proposed rule.