Tuesday, October 13, 2009

Red Flags Rule Facts

What is Red Flags Rule? Identity theft is the fastest growing crime in the 21st century. The Federal Trade Commission now requires all businesses (large or tiny) that collect and/or store personal information from customers to protect their customer’s identity.

Candidates for Red Flag Rule compliance:

• Doctors, dentists, accupuncturist, chyropractors, massage therepists, nutritionists, mental health providers etc.


• Accountants



• Utilities

• Retailers

• Telecommunications companies

• Deb collectors

• Employee benefit plans that sponsor a flexible spending account when the arranged using a debit card.

What if I don’t comply? Firms that are subject to the Rule must comply by Nov. 1, 2009 or face the possibility of enforcement action by the Federal Trade Commission (FTC).

What is the penalty? A $3,500 fine per customer whose data is stolen or leaked.

Cybercrime is the fastest growing white collar crime in the world. Cybercriminals generate more profit now than the illegal drug trade.

50% of businesses that lose their critical data for 10 days or more have to file for bankruptcy immediately!

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