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:
- Find out if the rule applies to your business or organization;
- Get practical tips on spotting the red flags of identity theft, taking steps to prevent the crime, and mitigating the damage it inflicts; and
- Learn how to put in place your written Identity Theft Prevention Program.
By identifying red flags in advance, you’ll be better equipped to spot suspicious patterns when they arise and take steps to prevent a red flag from escalating into a costly episode of identity theft.
I’m encouraged that identity theft is taken seriously enough that banks, credit unions and savings and loans are required to implement the Red Flag Rule. Other businesses and even individuals can use this policy as a guide to reduce their vulnerability. Keep in mind that the Red Flag Rules must keep pace with the ever-creative identity thieves.