Texas Steps Out with a NEW ID THEFT MEASURE

The 2007 Texas Legislature passed a bill establishing a new Closed Account Notification System ("CANS") -- the first example of this type of anti-ID theft measure in the U.S. 

The Texas Department of Banking administers CANS, which launched on March 1, 2008.  In an effort to combat identity theft, financial institutions such as banks and credit unions operating in Texas are required to submit information, at the request of their customer, concerning suspected compromised deposit accounts to a secure electronic notification system which then alerts all of the major check verification companies to the potential fraudulent activity.

Other states and the federal banking agencies will be watching this new system. 

Thanks to Stefan L. Jouret, with the law firm of Donovan Hatem LLP, Boston, MA, for calling this to my attention.

Link to Texas Dept. of Banking information about CANS: http://www.banking.state.tx.us/cve/memo03-18-08.htm

(ag) April 15, 2008, in Identity Theft