In May of 2007, the Federal Trade Commission (and five federal bank regulatory agencies including the FDIC, OCC, Federal Reserve, OTS and NCUA) established final rules and regulations regarding Identity Theft Red Flags and Address Discrepancies to help combat the nation’s fastest growing “white collar crime” — Identity Theft.

The Red Flag Rules are aimed at helping financial institutions and creditors such as banks, credit unions, auto dealers, mortgage brokers, utility companies and telecommunications companies and other transaction account-based companies detect identity theft by requiring that they establish a Written Identity Theft Prevention Program. Companies that have limited technical and staffing resources will find it difficult and time-consuming to meet Red Flag Requirements by the deadline; those that do not comply with the requirements risk exposure to fines and/or civil litigation.