Today's corporations face an almost endless list of rules and regulations with which they must comply: HIPAA , Sarbanes-Oxley and the recently updated Federal Rules of Civil Procedure (FRCP) are just some of the laws that businesses are already under the gun to comply with them. Now on November 1, 2008, the Federal Trade Commission (FTC) Red Flag Rules, which were passed in 2003, will take effect, and while these rules have received scant attention outside of the financial industry, the new regulations have a loophole in it that makes more businesses subject to it than may realize.
The FTC Red Flag Rules are primarily targeted at financial institutions that maintain large amounts of sensitive consumer information such as social security and bank account numbers. This information is used by identity thieves who, if they can obtain it through methods as phishing attacks, use it to open new consumer accounts or misuse existing ones.
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