OUR THOUGHTS ON:

Lurking Guidance in Legislation to Protect Identity

Risk Advisory/Internal Audit

By Donald Owens

You are most likely in the majority that is unaware of the lurking “Red Flag” rules embedded within the Fair and Accurate Credit Transactions (FACT) Act; but your unfamiliarity will not last for long. The rules, intended to reduce the risk of identity theft, apply to several industries. In general, organizations subject to the rules are those that provided goods and/or services to customers in advance of receiving payment. The rules outline a minimum of 26 “red flags” that organizations need to actively monitor as part of their business practices. The intent is to identify consumers who are attempting to falsify their identifies in an attempt to unlawfully obtain goods and/or services. November 1st was the effective date by which organizations subject to the “Red Flag” rules were to have implemented policies, procedures and practices to monitor for and identify such activities. If you do not know if your company is subject to these rules or have yet to establish needed monitoring practices, now is the time to act. To understand what is needed to create your action plan, contact Eric Wright.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments