Stop Identity Theft

In October 2008, the Federal Trade Commission (FTC) announced that it is delaying enforcement of the Red Flag rules six months to May 1, 2009.The reason for the delay is uncertainty over who is covered. Just who is covered (and therefore liable for failure to comply) is still somewhat confusing. However, if you’re not sure you’re covered, particularly if you’re a SaaS site, you’d better check out the rules carefully in order to avoid liability for failure to comply.What Are The Red Flag Rules?The Red Flag rules were adopted in 2003 to combat identity theft.Finally published in 2007, the Red Flag rules require financial institutions and “creditors” with “covered accounts” to establish identity theft prevention programs to identify, detect and respond to patterns, practices or specific activities that could indicate a customer-account holder has been victimized by — or is engaged in — identity theft.The Red Flag Rules are aimed [...]

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