"Red Flag" Identity Theft Programs Required by November 2008
| July 9, 2008 |
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By John D. Seiver and Ronald G. London
Yesterday the Federal Trade Commission (FTC) formally reminded financial institutions and creditors of the upcoming November 2008 deadline for implementing identity theft prevention programs in compliance with the "Red Flag" Rules that were jointly adopted last year by the FTC and five other federal agencies (the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration)
As explained in this advisory, all types of financial institutions and most electronic service providers (including video, Internet and voice service providers) will have "covered accounts" governed by these new rules and therefore must have designed, implemented and begun operating an internal system to detect and combat identity theft no later than November 1, 2008.
The FTC issued a gentle reminder yesterday that companies should be well along in getting their identity theft programs in place. The FTC also launched an outreach effort to explain the rules, which included publication of a very general alert on what the rules require and what types of businesses must comply. Continue reading...
