Well this is getting kind of predictable. The Federal Trade Commission this week has delayed for the third time in less than a year the deadline for companies to enact its identity theft rules known as Red Flags, which were set to become practice Aug. 1.
Originally set to become required practice Nov. 1, 2008, the Red Flags program is touted as being one of the major ways the government plans to fight the growing identity theft blight. Under the Red Flags rules, all entities that regularly permit deferred payments for goods or services, including entities such as health care providers, attorneys, and other professionals, as well as retailers and a wide range of businesses that invoice their customers must develop a written program that identifies and detects the relevant warning signs - or "red flags" - of identity theft. These may include, for example, unusual account activity, fraud alerts on a consumer report, or attempted use of suspicious account application documents. The program must also describe appropriate responses that would prevent and mitigate the crime and detail a plan to update the program.