Alerts

FTC Extends Enforcement Deadline for Identity Theft ‘Red Flags’ Rule to June 1, 2010

November 18, 2009

This Alert is to advise that the enforcement date for the rules seeking to prevent and combat identity fraud (the “Red Flags Rule” or “Rule”) issued by the Federal Trade Commission (“FTC”), the federal bank regulatory agencies and the National Credit Union Administration, has been extended until June 1, 2010, for financial institutions and creditors subject to enforcement by the FTC. The Red Flags Rule requires certain entities to develop and implement policies and procedures to protect against identity theft. The Rule applies broadly to “financial institutions” and “creditors” that maintain “covered accounts.” The determination of whether your business or organization is covered by the Rule is not based on your industry or sector, but, rather, on whether your activities fall within the relevant definitions of the Rule.