The Federal Trade Commission has extended enforcement of the Red Flags Rule until June 1, 2010. Enforcement of the rule has been delayed previously as the FTC sought to adequately educate affected corporations and institutions. The Red Flags Rule impacts financial institutions and creditors subject to FTC jurisdiction. According to the Rule, created under the Fair and Accurate Credit Transactions Act, covered entities must develop and implement written policies that aid in identity theft prevention.
Upon enactment of the Red Flags Rule the FTC embarked on an education campaign aimed at equipping affected entities with the knowledge to create and enforce solid identity theft prevention programs. For more information on how to comply with Red Flags Rule, please see the FTC guide here: www.ftc.gov/redflagsrule.
On October 30, 2009 it was decided that the Red Flags Rule is not applicable to attorneys. To read the complete news release including information about the latest delay, please visit: www.ftc.gov/opa/2009/10/redflags.shtm.