Wednesday, October 21, 2009

FTC has handbook on Red Flags Rules; CoNetrix offers major implementation service

CoNetrix has a web page on Section 114 of the 2003 Fair and Accurate Credit Transactions Act (FACTA), as well as Section 315. The law requires financial institutions to implement an Identity Theft Prevention Program with “Red Flag Rules”. The link is here. The program comes with a subscription.

The FTC (Federal Trade Commission) has a press release on the Red Flags Rules (practices discovered by automatic audits that suggest a high probability of identity theft), that had to be in placed by November 2008, URL link here. The Manual and other basic literature can be accessed at the basic Red Flags link here.

One of the most interesting Red Flags is not trying to collect a debt, either directly for from a debt collection agency. When a party does not claim a benefit that generally would be legitimate, that is a sign of intentions that are amiss.

1 comment:

Anonymous said... On Nov. 1, virtually every business nationwide will be required to comply with the Red Flags Rule, another piece of legislation designed to control identity theft by changing how businesses handle sensitive information of their customers and their employees. Most states have privacy laws in addition to federal privacy and informational security laws, yet many businesses fail to comply because few are aware the laws exist on privacy compliance, and best practices are required.
It is estimated that more than half of all businesses and most small enterprises are at significant financial risk if they lose consumer or employee information. Compliance with federal and state laws as well as having documented best practices goes a long way to reducing liabilities and risk.
The Identity Theft Education Center has posted a free online class for business owners to understand the law, their new responsibility and liability, and the most cost effective methods to lower their liability , comply with the law and better protect the information it collects on its clients and customers. The online presentation is conducted by KJ Anderson III, CITRMS ( ) and can be found at .