CAMS-ii and Red Flag for October 2008 Release

Lately, CBS has had a number of questions concerning the Identity Theft Red Flag Rule that becomes effective November 1, 2008. This rule is intended to help financial services firms protect consumers' identities. The goal of the rule is to flag attempted and actual identity theft early, thereby reducing the consequences associated with identity theft.

CBS will include the following in an October 2008 CAMS-ii Release, tentatively named CAMS-ii version 2.8.0.

There will be a new section in the next CAMS-ii release, Red Alert Items, in the Exceptions/Pendings Level Four menu (Back Office > Standard > Exceptions/Pendings ) for Red Flag Items.

CAMS-ii will identify new members whose social security number (SSN) does not meet minimum validity checks:

+ None of the three SSN segments can be all zeroes:
-- Area (first three digits) ex. 000-12-1234
-- Group (middle two digits) ex. 123-00-1234
-- Serial (last four four digits) ex. 123-45-0000
+ The Area has to be less than 800
+ The Social security number cannot be 078-05-1120 because this was used
on sample social security cards in wallets back in the 1940's and 50's.

CAMS-ii will track number of month-to-date and year-to-date address changes. It also provides the credit union with parameters to notify when excessive changes for these events occur:

+ New ATM/Debit card ordered/setup.
+ Credit union receives a new credit card record for the member

CAMS-ii will compare the member's address in the credit report with the member's address on record at the credit union. Members will be red flagged whose city, state, or zip codes differ; or there are more than two (2) tokens of street address that do not match.

CBS has added a field on the loan records to report to credit bureaus that the credit union has verified the member's address.

Members can designate expected monthly activity to the credit union for inclusion on the member Personal Data Record. This information can be entered on new member setup or added/changed later via file maintenance. The system will track daily activity in these categories and create monthly summaries that can be compared against the member's expected activity to flag possible problems. The items tracked are:

+ Cash In Amount
+ Cash In Count
+ Wire In Amount
+ Wire In Count
+ Cash Out Amount
+ Cash Out Count
+ Wire Out Amount
+ Wire Out Count
+ Check In Amount
+ Check In Count
+ ATM In Amount
+ ATM In Count
+ Check Out Amount
+ Check Out Count
+ ATM Out Amount
+ ATM Out Count
+ ACH In Amount
+ ACH In Count
+ ATM POS Amount
+ ATM POS Count
+ ACH Out Amount
+ ACH Out Count

Please address any questions concerning this posting to the Issue Tracking System.