Most U.S. banks not yet compliant with identity theft rules

Less than one-third of U.S. banks will be fully compliant with the U.S. government’s identity theft prevention rules by the Nov. 1 deadline, according to a new study.

With the deadline looming, research by Needham, Mass.-based TowerGroup found that many U.S. financial services institutions have mistakenly considered compliance with the “Red Flags Rules,” as they are known, as merely an administrative exercise.