Response to reader about “Red Flags” Rule enforcement

November 6, 2009 by Matt Ehrlich

On Friday, October 30th, the FTC again delayed enforcement of the “Red Flags” Rule – this time until June 1, 2010 – for financial institutions and creditors subject to the FTC’s enforcement.   Here’s the official release: http://www.ftc.gov/opa/2009/10/redflags.shtm.

But this doesn’t mean, until then, businesses get a free pass.  The extension doesn’t apply to other federal agencies that have enforcement responsibilities for institutions under their jurisdiction.  And the extension also doesn’t alleviate an institution’s need to detect and respond to address discrepancies on credit reports.

Red Flag compliance

Implementing best practices to address the identity theft under the Red Flags Rule is not just the law, it’s good business. 
The damage to reputations and consumer confidence from a problem gone unchecked or worse yet – unidentified – can be catastrophic.  I encourage all businesses – if they haven’t already done so – to use this extension as an opportunity to proactively secure a Red Flags Rule to ensure Red Flag compliance.  It’s an investment in protecting their most important asset – the customer.

Related Posts

AML transaction monitoring stands as a crucial barrier against financial crimes, which ensures the integrity of financial systems worldwide.

April 18, 2024 by Julie Lee

Anti-money laundering and fraud prevention have historically been separated, but here's why that might not be a good idea.

March 27, 2024 by Julie Lee

Know Your Customer (KYC) procedures are a requirement for banks and other financial institutions to collect and verify the...

March 21, 2024 by Stefani Wendel