The Red Flags Rule Go Into Effect November 1

This blog entry is the beginning of a series of articles written by members of the FraudRating team about the Red Flag Rules.  In addition to developing a product, we believe that we are going to be a source of education for Businesses, Government and the Education market.  Please take note of these articles, as we explain how and why our product will fit into your Red Flag Rules for your website.

At the FTC website you can read about the Red Flag Rules: http://www.ftc.gov/bcp/edu/microsites/redflagsrule/faqs.shtm

The FTC has some keys questions about the Red Flag Rules, such as:

A. General Questions About the Red Flags Rule
B. Who’s Covered by the Red Flags Rule?
C. The Red Flags Rule and Government Agencies, Non-Profit Organizations, and Schools
D. Designing Your Identity Theft Prevention Program
E. Red Flags Rule Compliance and Enforcement

The Red Flags Rule (this time around) impact only “financial institutions” and “creditors” according this FTC website. But this is really a hazy type of grouping. What is a creditor? Don’t many companies basically finance the person who buys their service… This would make them a creditor and that is very broad according to this website. That would be the concept of giving out credit, like in a Saas (Software As A Service). So it would be easy to understand The Red Flags Rule eventually being extended to many other industries.

If you look at the guide book here, you will find a list of the The Red Flags Rule and all the reasons why you need to meet these requirements.  Our goal at FraudRating is to try to come up with part of the automation of these rules through our new service, which is about to be released.

This blog is going to have a series of articles about how to use the FraudRating system as part of implementing your The Red Flags Rule.  This software is going to be available for any type of website, including service delivery companies who have a website and physical ecommerce companies who shop products.  If you are working at a government or educational website that registers or sells information or creates some type of transaction, the FraudRating Manager will be the appropriate product for you to try out.

There is a beta test that is just beginning with this product.   Please contact us if you are interested in being a beta tester.