Enforcement of the Red Flags Rule will be further delayed until Jan. 1, 2011, according to the Federal Trade Commission’s late May announcement.
Of course, Congress could decide to legislate another deadline, so businesses covered by the rule should be aware that additional changes may lie ahead. The deadline has been extended several times, and it remains unclear what the ultimate resolution of this issue will be. Before the most recent extension, the deadline was extended from Nov. 1, 2009, to June 1, 2010.
Congress is considering exemptions from the Red Flags Rule for certain professions. Currently, the rule requires financial institutions and creditors with covered accounts to have identity theft prevention programs to identify, detect and respond to patterns, practices or specific activities that could be warning signs – or red flags – of identity theft.
