The Red Flag Rule requires many businesses to create and implement a written Identity Theft Prevention Program. Businesses covered under this rule must have their written and implemented program designed so it detects the warning signs of identity theft in their day-to-day operations.
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The Rule applies to “Financial Institutions” and “Creditors.”
“Creditor” has been defined broadly to basically cover most businesses or organizations that regularly provide goods or services first and allow customers to pay later.
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“Creditor,” with “Covered Accounts.”
1. Consumer accounts designed to permit multiple payments or transactions; or
2. Any other account that presents a reasonably foreseeable risk from identity theft.
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