Client Alert
Deadline Looms for Compliance With Identity Theft Red Flag Guidelines
July 28, 2008
Congress passed the Fair and Accurate Credit Transactions Act of 2003 ("FACT Act") in response to widespread concerns about misuse of personal information of consumers, including identity theft. The Act expanded the coverage of financial regulation to many businesses that obtain and handle personal information of consumers. The federal regulators, including the Federal Trade Commission ("FTC"), issued final identity theft "red flag" rules and guidelines earlier this year. Many types of businesses or enterprises – including utilities, municipalities, telecom providers, internet service providers, security companies and even small retailers - may be surprised to find they are covered by these newly-implemented requirements of the FACT Act. Determining whether your business or enterprise is covered by the new Red Flag Guidelines requires a careful review of definitions in the FACT Act and the new regulation. Simply stated, the new rule's coverage is based on what you do and not who you are.
Click here to read our client alert regarding Identity Theft "Red Flag" Guidelines.
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