Are you covered? Red Flags Rule tackles identity theft
Abstract: Several years ago, the Federal Trade Commission issued its “Red Flags Rule,” which requires financial institutions and other organizations to implement a written identity theft prevention program. The rule is designed to detect the warning signs of identity theft in their day-to-day operations. Last year, the SEC and the Commodity Futures Trading Commission jointly adopted their own Red Flags Rule for entities under their jurisdiction. This article discusses what types of entities might be subject to the Red Flags Rules.