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17 May 2010

Red flag day coming up fast

From June 1st, more US organizations will have to comply with "red flag rules" which are nothing to do with Communism, semaphores or that man walking in front of a horseless carriage but were introduced by the Fair and Accurate Credit Transactions Act (FACTA) in 2003 in order to reduce America's identity theft epidemic. The red flags essentially involve financial institutions reporting suspicious activities and transactions to the authorities, in much the same way as money laundering laws and regulations. Banks are already required to comply but other US financial organizations have just a few short days to polish off their controls.

The Baltimore Sun says:
Be prepared to pull out your driver's license on your next visit to the dentist. And don't be surprised if a retailer asks for a birth date or mother's maiden name if it's giving you credit for your big-ticket purchase. They're just following federal rules to protect consumers from identity theft. Beginning next month, a wide range of businesses — auto dealers, cell phone companies, real estate agents, mortgage brokers, utilities and health care providers — must start complying with "Red Flag Rules." The rules are meant to stop fraud before it happens by requiring certain businesses to look for signs that customers might be imposters and, if there are signs that they are, to take action.

Comments are open.

Regards, Gary

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