It's no surprise that as the scope of the Internet and the services it provides the public grows that national legislators are behooved to pass laws to ensure public safety and security online. One such piece of legislation is the Fair Credit Reporting Act (15 U.S.C. 1681m(e)), also known as the “Red Flag Guidelines” (RFG).
The RFG states that creditors and health care practices that hold “covered accounts” must detect and identify warning signs (or red flags) of identity theft. There have been regulations in place since 2003, but the US House of Representatives recently passed a new bill that amends the original law (H.R. 3763). This amendment will go into effect on November 1, 2009. The largest change to the rules is that exemptions have been put in place for some small organizations:
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