FTC Issues Revised Guidance for Businesses on Red Flags Rule Compliance
June 21, 2013 | Aging Services Risk Management
The U.S. Federal Trade Commission (FTC) has issued revised guidance to help businesses comply with the agency’s Red Flags Rule on identity theft. The rule, which was updated last year to more narrowly define the types of creditors subject to its requirements, stipulates that covered entities implement a written identity theft prevention program designed to detect the “red flags” of identity theft in their day-to-day operations, take steps to prevent these crimes, and mitigate the damage if they occur. The revised guidance identifies who must comply with the Red Flags Rule, presents answers to frequently asked questions, and outlines a four-step process that businesses and other creditors can use to achieve compliance.