Red Flags

By: Kelly Carson

Last month, the Federal Trade Commission (FTC) issued an updated “How-To” guide to help businesses and organizations determine whether they are subject to the agency’s Red Flags rule (Rule).  Under the Rule, certain entities are required to establish written programs that are aimed at detecting and preventing identity theft.

The FTC’s revised guide lays out which businesses the Rule covers — namely, “financial institutions” and some “creditors” — as well as the steps they must take to comply with the Rule’s requirements.  As covered in a previous post, the Rule was amended in November 2012 to narrow the definition of “creditor,” bringing it in line with the Red Flag Program Clarification Act of 2012.Continue Reading FTC Issues Revised Business Guide on Identity Theft Red Flags Rule

Last week, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) published in the Federal Register a joint rule requiring entities regulated by the agencies to adopt programs to detect and prevent identity theft.  The rule is referred to as the “red flags rule” and applies to certain broker-dealers…

Continue Reading SEC and CFTC Issue Final Identity Theft Rule

On Friday, November 30, the Federal Trade Commission (FTC) issued an Interim Final Rule to amend its Red Flags Rule, which requires certain financial institutions and creditors to establish programs to detect, prevent and mitigate identity theft in connection with consumer accounts.  The Interim Final Rule narrows the definition of…

Continue Reading FTC Announces Amended Rule on Identity Theft “Red Flags”

Last Friday, the U.S. Court of Appeals for the D.C. Circuit issued its opinion in litigation between the American Bar Association (ABA) and the Federal Trade Commission (FTC) over the scope of the FTC’s Red Flags rule.  The Court held the ABA’s claims moot in light of recently-enacted legislation.   

The Red…

Continue Reading D.C. Circuit Decides Red Flags Litigation

We covered in a previous post ongoing litigation in the D.C. Circuit between the American Bar Association and Federal Trade Commission over the scope of the FTC’s Red Flags rule.  On January 20, 2011, the FTC filed a supplemental brief analyzing the impact of the recently-enacted Red Flag Program Clarification…

Continue Reading Additional Briefs Filed in ABA-FTC Red Flags Litigation

We recently covered the Red Flag Program Clarification Act of 2010 in a blog post and client alert.  The Act was intended to narrow the scope of the Federal Trade Commission’s Red Flags rule, which imposes requirements on creditors and financial institutions to detect and deter identity theft.  Prior…

Continue Reading Federal Trade Commission Provides Initial Interpretation of the Red Flags Clarification Act in Litigation with the American Bar Association

Over the weekend, President Obama signed into law the “Red Flag Program Clarification Act of 2010.”  The Act is intended to narrow the types of entities that are subject to the Federal Trade Commission’s Red Flags rule, which requires financial institutions and creditors to take certain steps to prevent identity…

Continue Reading President Signs Into Law Legislation Narrowing Scope of Red Flags Rule

Last week, Congress delivered to President Obama for his signature the “Red Flag Program Clarification Act of 2010,” which is intended to narrow the types of entities that are subject to the Federal Trade Commission’s Red Flags rule.  The Red Flags rule requires “financial institutions” and “creditors” to establish programs…

Continue Reading President to Sign Into Law Legislation Narrowing Scope of Red Flags Rule