Aug. 1 is fast approaching and companies are scrambling to be in compliance with the Red Flags Rule. In response to the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), Platinum Credit Services Inc. (PCS) has formed a partnership with Red Flag Advisory Corporation to provide a complete and comprehensive program which will keep companies in compliance with the Red Flags Rule.
The Red Flags Rule, in effect since Jan. 1, 2008, requires many business and organizations to implement a written Identity Theft Program designed to detect the warning signs or “red flags” of identity theft in their day-to-day operations, take steps to prevent crime, and mitigate the damage it inflicts. The Red Flags Rule is enforced by the Federal Trade Commission (FTC), the federal bank regulatory agencies, and the National Credit Union Administration. The program which companies must create for the Red Flags Rule must include four basic components, which together create a framework to address the threat of identity theft. The program must include:
◄ A platform to detect red flags;
◄ Identify said red flags;
◄ Have a policy and procedures manual for combating the red flags; and
◄ Have updated training on the established program.
Currently PCS has established a product, Precise ID, which scans a credit report for “red flags." On the report, there is a scoring model which will let the company know the risk of potential fraud. The Red Flag Advisory Corporation sets up complementary assessment audits, compliance manuals, and ongoing training for identity theft. Together, the two companies offer the marketplace a full complete identity theft program that is tailored to a specific company’s needs.
Aug. 1 is the final date before enforcement takes place. Beyond that date, failure to comply will likely lead to fines starting at $2,500 per incident.
For more information, visit www.platinumcreditservices.com.