Privacy & Compliance Awareness

Red Flag Training

The Federal Trade Commission (FTC) has issued regulations (the Red Flags Rules) requiring institutions having covered accounts to develop and implement written identity theft prevention programs, as part of the Fair and Accurate Credit Transactions (FACT) Act of 2003.

The programs were required to be in place by December 31, 2010, and must provide for the identification, detection, and response to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft.

A covered account is an account used mostly for personal, family, or household purposes, and that involves multiple payments or transactions.

Covered accounts include things like credit card accounts, cell phone accounts, utility accounts, checking accounts, and savings accounts.