The Federal Trade Commission’s (FTC) Red Flags Rule
represents a monument in the history of consumer and business protection. When
put into effect, the Red Flags Rule will be the first national standard of
fraud prevention and a major step in the fight against identity theft. And,
because of the Rule’s wide reach and demand for detail, Congress has requested
that the deadline for national compliance be extended once again.
According to an official press release from the FTC, the new deadline
for national compliance with the Red Flags Rule is June 1, 2010. The rule will
still apply to all businesses defined as “financial institutions” or “creditors”
in the FTC’s documentation; all of the affected businesses will be subject to
enforcement and possible fines after the enactment date.
The FTC’s Red
Flags compliance guide will remain available to help businesses that may
have questions about the Rule’s application and how they can successfully reach
compliance. One change to the Rule is cited in the press release, which states
that as of October 30, 2009, the Red Flags Rule will no longer apply to
attorneys. However, any additional changes to that exception or any actions
taken by other federal divisions within their jurisdictions remain unaffected
by the pushback of the compliance date.
We highly recommend addressing any questions or concerns you
may have about implementing a successful Red
Flags compliance plan as soon as possible. EVS offers a wide
range of id verification and id authentication services that can play important roles in
the identification of Red Flags and the prevention of fraud.