FTC's 'Red Flags' Rule: Expert Tips for Businesses and Consumers

SAN DIEGO, May 21 /PRNewswire/ -- On June 1, 2010, the Federal Trade Commission (FTC) will begin enforcing the "Red Flags" Rule, requiring creditors across multiple industries—including auto, mortgage and wireless—to develop programs to develop and implement documented identity theft prevention programs. Businesses and consumers alike have incentives to improve their defenses against the threat of identity theft.  According to recent research, 4.8 percent of Americans became fraud victims in 2009—totaling a projected total of $54 billion in crime.

Thomas Oscherwitz, chief privacy officer for ID Analytics, Inc. and former U.S. Senate Legislative expert on identity fraud, is available to discuss the following among other Red Flags Rule-related topics:

• Why implementing protections is important
• Why consumers should care about the Red Flags Rule
• Effects on both businesses and consumers
• Deadline delays: likelihood and consequences of continued delays

Additionally, Oscherwitz offers the following tips for understanding compliance industry-wide:

1. Compliance is unique.  Companies cannot simply install an off-the-shelf vendor compliance solution and expect that they have met the rules. Instead, they must do a self-assessment of unique identity theft risks.  Poorly drafted compliance programs can interfere with the customer experience and slow business processes.
2. Take the rules seriously.  Companies are now accountable for the identity theft that happens on their watch.  Data security has gone beyond protecting against corporate vulnerabilities and now includes ensuring the identity security of customers.  Companies who fail to comply face penalties and other enforcement actions.
3. Understand, resolve risks.  Companies must not only identify risks, they must also resolve them—as cost effectively as possible.  Consumers need to take a few minutes to visit www.MyIDScore.com to understand their risk of identity theft.  MyIDScore.com is a free online service that provides immediate insight into whether their personal identifiable information is being used fraudulently to obtain assets, goods, or services.  
4. Build a Red Flags Rule program for the long-term.  Many companies have fraud prevention systems in place that can satisfy the Red Flags Rule, yet compliance systems must evolve along with evolving fraud threats. The regulators expect companies to have a program that can be regularly updated.

For more information on ID Analytics, click here.

About ID Analytics, Inc.

ID Analytics, the leader in on-demand identity intelligence, protects both organizations and consumers by providing unprecedented real-time visibility into the risk of individuals. ID Analytics pioneered identity-scoring technology. ID Analytics combines three unique capabilities to assess risk and improve the customer experience across all consumer touch points: the ID Network®–the nation's only real-time, cross-industry compilation of identity information; Personal Topology™– an individual's particular identity characteristics and their connectedness to each other; and ID Analytics' proprietary Advanced Analytics(SM). Leading communications, financial services, retailing, and healthcare companies, as well as multiple government agencies, trust ID Analytics to provide solutions that drive new revenue opportunities, reduce financial losses, and facilitate compliance with federal regulations. ID Analytics is based in San Diego, CA.

For more information about ID Analytics' work with leading telecommunications, financial services, retail, and healthcare companies, as well as government agencies, to help prevent consumer identity fraud, or to arrange for an interview, please contact:

ID Analytics is a registered trademark of ID Analytics, Inc.  All other trademarks and registered trademarks are the property of their respective holders.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.

Thomas Oscherwitz

https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=73864

SOURCE ID Analytics