The Red Flags Rule requires many businesses and organizations to implement a written Identity Theft Prevention Program designed to detect the warning signs — or "red flags" — of identity theft in their day-to-day operations. By identifying red flags in advance, businesses will be better equipped to spot suspicious patterns that may arise -- and take steps to prevent a red flag from escalating into a costly episode of identity theft.
Resources on this site can help business people educate their staff and colleagues about complying with the Red Flags Rule.
Your Identity Theft Prevention Program is a "playbook" that must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft. Your Program should enable your organization to:
The Red Flags Rule also includes guidelines to help financial institutions and creditors develop and implement a Program, including a supplement that offers examples of red flags.
The FTC and the federal financial agencies have issued Frequently Asked Questions and answers to help businesses comply with the Rule.
The Rule requires "financial institutions" and "creditors" that hold consumer accounts designed to permit multiple payments or transactions -- or any other account for which there is a reasonably foreseeable risk of identity theft -- to develop and implement an Identity Theft Prevention Program for new and existing accounts. The definition of "financial institution" includes:
A change in the law on December 18, 2010 amended the the definition of "creditor," and limits the circumstances under which creditors are covered. The new law covers creditors who regularly, and in the ordinary course of business, meet one of three general criteria. They must:
Bookmark this site and check it often for revisions that reflect changes in the law.
Are you taking steps to protect personal information? Safeguarding sensitive data in your files and on your computers is just plain good business. After all, if that information falls into the wrong hands, it can lead to fraud or identity theft.
A one-stop national resource to learn about the crime of identity theft. It provides detailed information to help you deter, detect, and defend against identity theft.
Provides practical tips from the federal government and the technology industry to help computer users be on guard against Internet fraud, secure their computers, and protect their personal information.
Educates consumers and businesses about the importance of personal information privacy, including the security of personal information.