New ‘Red Flag’ Requirements for Financial Institutions and Creditors - In Effect May 1, 2009

In an attempt to thwart the growing numbers of identity theft the FTC is requiring financial institutions & creditors to implement a program to detect, prevent, and mitigate instances of identity theft.

The Federal Trade Commission (FTC), the federal bank regulatory agencies, and the National Credit Union Administration (NCUA) have issued regulations (the Red Flags Rules) requiring financial institutions and creditors to develop and implement written identity theft prevention programs, as part of the Fair and Accurate Credit Transactions (FACT) Act of 2003. The programs must be in place by November 1, 2008, and must provide for the identification, detection, and response to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft.

The Federal Trade Commission will suspend enforcement of the new “Red Flags Rule” until May 1, 2009, to give creditors and financial institutions additional time in which to develop and implement written identity theft prevention programs.

Is your company required to comply under this new Rule? Click here for the full article from FTC's website.

Link to Full Article & Rules here

The FTC offers an online guide to help you create the program for your office.

Link to FREE guide here