Red Flags Rule
2009-07/22 Derek L. Prestin

On August 1, 2009, a new FTC rule (known as the "Red Flags Rule") will go into effect which will require many businesses and organizations to implement safeguards to protect their consumers against identity theft.  Under the Red Flags Rule,  businesses and organizations are required to spot and act on certain activities or "red flags" that are often indicators of identity theft.  To comply with the Red Flags Rule, these businesses and organizations will need to develop and adopt a written "red flags program" to identify and detect "red flags," respond to the "red flags" detected, and ensure that the program is kept up-to-date in order to minimize the damage from identity theft.  Further information can be found in the linked article titled, "Red Flags Rule."

Please feel free to contact Derek Prestin, who prepared this article, or an attorney within the Business Transactions Practice Group of Ruder Ware if you need assistance or have any questions in regard to this article. 

© 2009 Ruder Ware, L.L.S.C. Accurate reproduction with acknowledgment granted. All rights reserved.
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