Red Flags Rule Archives - John Sileo, Cyber Security Training

Posts tagged "Red Flags Rule"

FTC Red Flags Rule: Is Your Business Ready?

FTC Red Flags Rule Goes into Effect June 1st, 2010

The FTC will begin enforcing the Red Flag Rule on June 1st, which states that certain businesses and creditors must help fight identity theft as well as create an identity theft prevention plan. This applies to a very broad class of businesses: those defined as “financial institutions” and those that extend any type of credit to their customers.

In other words, if you don’t receive cash the moment you deliver your product or service to your customer, your business most likely falls under the umbrella of the Red Flags Rule. If you do any billing after the fact (i.e., accounts receivable), you are considered a creditor, and therefore in the group of companies governed by Red Flags.

This includes:

Any Business that Extends Credit
All Banks
Most Brokerage Firms
Credit Card Companies

Identity Theft Speaker: Red Flags Rule How-To Guide

Are you one of the 9 million Americans who will have their credit damaged or their bank account emptied this year? Or perhaps your medical treatment will be affected. The cost of identity theft to individuals and businesses is staggering; hence, the Red Flag Rule, enforced by the FTC, federal bank regulatory agencies and the National Credit Union Administration.

There are always “red flags” that pop into our heads but too often we ignore them. Call it “intuition” or whatever you want; the vital thing is to pay attention. To that end, many businesses and organizations are now required to implement the “Red Flags” Rule to implement a written Identity Theft Prevention Program. The goal is to detect warning signs in day-to-day operations, take steps to prevent the crime and limit any damage.

Are you covered by the Red Flags Rule? Read Fighting Fraud with the Red Flags Rule: A How-To Guide for Business to: