Final answer:
The Fair and Accurate Credit Transactions Act (FACTA) is aimed at reducing identity theft by implementing measures that protect consumers' personal information from being used fraudulently and ensuring secure disposal of consumer data to prevent data breaches.
Step-by-step explanation:
The Fair and Accurate Credit Transactions Act (FACTA) is primarily designed to help reduce identity theft. Identity theft, sometimes referred to as True-name Fraud, occurs when a person wrongfully acquires and uses another individual's personal information without permission—which can include actions like unlawfully obtaining a social security number or credit card information. FACTA offers various measures to protect consumers, such as free credit reports, alerts, and placing fraud alerts on credit files, making it more difficult for identity thieves to use stolen information.
Moreover, FACTA includes provisions to help ensure accuracy in credit reports and to provide for secure disposal of consumer information, thus aiming to protect consumers from the kind of large-scale data breaches seen in recent incidents involving corporations and financial institutions. Through these mechanisms, FACTA contributes to a reduction in identity theft by implementing protections against the improper use and dissemination of personal information.