Definition:
The Identity Theft Red Flags and Address Discrepancies Under the Fair and Accurate Transactions Act of 2003 (also called the Identity Theft Red Flag Rules) is designed to hold businesses more accountable in their management of consumer information through guidelines and legislation that address technology and procedural issues affecting how that information is handled.
Among the issues that the Red Flag Rules address is the development and implementation of an Identity Theft Prevention Program designed to combat identity theft in connection with new and existing accounts. This includes creating a written plan for how customers will be protected, including:
- Identification of patterns, practices, and specific forms of activity that are considered indicators of identity theft (or identity theft red flags).
- Appropriate responses to red flags.
- Regular updating and maintenance of customer protection plans.
Also Known As: The Red Flag Rules, The Identity Theft Red Flag Rules