The deadline for adhering to the Federal Trade Commission’s
(FTC) Red Flags Rule has been postponed until November 1, 2009. But, with the end of
September rapidly approaching, time is already running out. It’s more important
than ever to become familiar with Red Flag expectations, evaluate your
compliance needs, and find a fraud prevention services provider that will supply the proper id verification products to integrate with your current business procedures.
An excellent article posted by Larry M. White over at Enegociate
articulates the importance of Red Flag compliance. From beginning to end, the
article addresses the complex and often confusing details of the Red Flags
Rules with language that speaks clearly to business owners, CEOs and employees
alike.
Topics covered in detail include:
- What is a “Red Flag”?
- Who has to comply with Red Flags Rules, and why?
- What is required to become Red Flags Rule
compliant?
- What is the required ID verification and ID
authentication process?
- What should businesses looking to become
compliant be wary of?
White emphasizes the need to have a compliance plan that
meets the specific needs of your business. He says, “ Your [Red Flag
compliance] policy, and training for that matter, must be relative and
appropriate to the compliance requirements specific to your type of industry. …
[T]here a few compliance providers available that offer … compliance services
at an affordable price, and this may be your best bet.”