Thursday, July 30, 2009
The Federal Trade Commission (FTC) has given financial institutions and creditors a further temporary reprieve â€“ until November 1, 2009 â€“ to comply with the so-called â€œred flags ruleâ€ which requires them to develop and implement written identity theft programs. This is the third time the FTC has delayed enforcement of the new rules which were originally slated to take effect in 2008. The FTC said it will provide additional resources and guidance to clarify whether businesses are covered by the rule and what they must do to comply.Â The FTC’sÂ Web site, www.ftc.gov/redflagsrule, offers resources to help businesses determine if they are covered and, if they are, how to comply. The red flags rule requires financial institutions and creditors with covered accounts to implement prevention programs to identify, detect and respond to patterns, practices or specific activities that could indicate ID theft. A July 29 online article at LawyersÂ USA by Kimberly Atkins reports that attorneys are seeking exemption from the rule. Check out I.I.I. facts and stats on identity theft.