The Red Flags Rule was promulgated by the Federal Trade Commission and other federal agencies charged with overseeing compliance to the Financial Service Modernization Act (GLB), the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transaction Act (FACTA). It states that all Financial Institutions and others who are considered “Creditors” must:
1. Identify in writing the areas of their operation where the personal information of their clients is at risk of
unauthorized access;
2. Develop written procedures to mitigate that risk;
3. Detect unauthorized access if or when it happens.
Full LifeSpan Article from IAITAM.
The Rule became effective on January 1, 2008 with an original enforcement date of November 1, 2008. It has since been delayed 2 times.
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