The Red Flags Rule, the Federal Trade Commission’s (FTC) new
mandatory standard of business security for combating identity fraud, has had
its deadline for compliance extended twice since its introduction. The
compliance rule now goes into effect on November 1, 2009.
The government extended the deadline after the rule’s
ambiguous language failed to clearly specify the businesses needing to meet the
requirements. Now, the FTC has launched a new official Red Flags Rule website that acts as
a how-to guide for business owners who may be wondering whether the rule
applies to them. It includes clear definitions of the businesses that will need
to adjust for compliance as well as advice on how to implement the appropriate
compliance standards. It also offers other valuable tips and suggestions for
spotting fraud attempts and how to properly manage them in real business
situations.
Even if you have already identified your business’s Red Flag responsibility and implemented a compliance program, the new FTC site
is a valuable tool for improving your current fraud prevention process.