Tag Archives: ID Theft

ID Theft Rules Deferred Again

The Federal Trade Commission (FTC) has given financial institutions and creditors a further temporary reprieve – until November 1, 2009 – to comply with the so-called “red flags rule† 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.  The FTC’s  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 Lawyers  USA by Kimberly Atkins reports that attorneys are seeking exemption from the rule. Check out I.I.I. facts and stats on identity theft.

Medical ID Theft Risk

Increasing use of electronic records in the health care system means a growing number of people are falling victim to medical identity theft. A June 12 article in the New York Times by Walecia Konrad focuses on this emerging risk. It estimates that in 2007 more than 250,000 Americans a year were victims of medical identity theft, a number that is increasing. Â  A World Privacy Forum report published in 2006 found that despite the profound risk it carries medical identity theft remains the least studied and most poorly documented of all identity theft crimes. The report estimated that there could be as many as a quarter to half a million people who have been victims of this crime. Medical ID theft occurs when someone uses a person’s name or other parts of their identity such as insurance information, without the person’s knowledge or consent to obtain medical services or goods or to make false claims for medical services or goods. Â  The World Privacy Forum notes that victims may find it more difficult to recover from medical identity theft as medical errors are disseminated and redisseminated through computer networks and other medical information-sharing pathways. ID theft remains the number one consumer complaint received by the Federal Trade Commission (FTC), accounting for 32 percent of all fraud complaints in 2007. Some 258,427 identity theft complaints were reported to the FTC in 2007, up 5 percent on the previous year. Medical identity theft accounted for 1.6 percent of all identity theft victims, according to the FTC. Check out I.I.I. info on identity theft.