In an effort to extend their Red Flags education campaign, the FTC has announced that enforcement on the Red Flags Rule will be delayed until November 1, 2009. This education campaign seeks to educate businesses on whether they are covered by the Rule, and if so, which steps to take in order to be compliant. Small businesses, in particular, had fumbled to grasp whether their risk-based programs were harmonious with the Red Flags Rule.
The Red Flags Rule is a new regulation working to prevent fraud. Under this regulation certain businesses are required to implement programs that would enable identification, prevention and response to warning signs (red flags) of identity theft. Businesses affected are mainly financial institutions and those deemed "creditors".
For more information, please see the press release at: www.ftc.gov/opa/2009/07/redflag.shtm