the red flags rule requires banks to establish identity theft prevention programs.
the red flags rule requires banks to establish identity theft prevention programs.
what does the red flags rule require banks to establish?
identity theft prevention programs
there are many different companies that this rule applies to: this list includes, but is not limited to finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies; or any other company that advances funds or routinely interacts with consumer credit agencies when performing a service and receiving payment once the work is complete









































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the red flags rule sets out how certain businesses and organizations must develop, implement, and administer their identity theft prevention programs. the program must include four basic elements, which together create a framework to address the threat of identity theft.
red flags rule
on april 19, 2013 the sec and cftc published their joint final identity theft red flags rule and guidelines to be effective may 20, 2013, with a compliance date of november 20, 2013. the rule and guidelines do not contain requirements that were not already in the ftc red flags rule and guidelines, and do not expand the scope of that rule to include new categories of entities that the rule did not already cover. they do, however, contain examples and minor language changes designed to help guide entities within the sec's enforcement authority in complying with the rule, which may lead some entities that had not previously complied with the rule to determine that they fall within the scope of the rule that the sec and cftc adopted.
red flags rule