FTC Issues Do-it-yourself Template for Red Flags Compliance

The FTC has created a template to help "low risk" entities comply with the new Red Flags rules. "Low risk" entities are  those whose business practices are such that it would be hard to use a false identity, such as working with customers known to the employees personally or providing services at customers' homes.

The template, an editable pdf that can be saved and printed, asks users to explain why they are at low risk of identity theft, then guides users through the four steps required by the rules: identifying what might be red flags, detecting red flags, responding to red flags, and administering the program.

The FTC's template can be found here: http://www.ftc.gov/bcp/edu/microsites/redflagsrule/RedFlags_forLowRiskBusinesses.pdf

The Red Flags rules require entities that extend credit to customers to implement a written Identity Theft Prevention Program to detect the warning signs ("red flags") of identity theft. If you have questions about the Red Flags Rules or how they might affect your business, please contact: