CANS program aimed at curbing identity theft

With CANS, check verification entities can find out as soon as it's reported to a participating bank, not weeks after multiple bad checks have been passed. Giddings said CANS can "nip this in the bud" and has the potential to save Texans possibly millions of dollars.

James said the Texas Department of Banking began working with other stakeholders in this issue, such as bankers, trade groups and state and federal agencies - to craft a rule that was adopted by the Finance Commission. "We believe this rule covers all the legal and practical processes to make this a success," he said.

James recommended that victims follow the guidance in the statute - to file a police report and then take a copy of the report or case number to their banks and request the institution to close that account and open a new one. Then the banking authority will notify parties of the closed account, including major check verification entities in Texas.

"Identity theft exacts its greatest cost on the victim through the accumulation of negative information in the customer's consumer credit report files," said Giddings, who added that every fraudulent check adds to the burden of a victim trying to restore his or her good name.

For more information on CANS, click here.