The Federal Trade Commission (FTC) has issued regulations requiring financial institutes to develop and implement written identity theft prevention programs as part of the Fair and Accurate Credit Transactions (FACT) Act of 2003. Retailers or land-lease communities involved in home sales who assist customers with applications for home loans are covered under the Red Flags Rule. In addition, retailers that are mortgage brokers are covered under the rule. Programs must be in place by August 1, 2009.
The FTC has developed a template for businesses that are low-risk for identity theft. This do-it-yourself template is available by Clicking here
- Click here for the FTC guide, Fighting Fraud with the Red Flags Rule: A How-To-Guide for Business. "On pages 19-21 you will find the common “Red Flags” that are part of Step 1 of the do-it-yourself template above which requires you to identify “Red Flags” that are relevant to your business".
