Red Flag Regulations

The most recent National Law Journal features an article entitled "Scrambing With ID Theft Programs" (subscription) discussing the so-called "Red Flag Regulations" which implement two sections of the Fair and Accurate Credit Transactions Act. The regulations, formally termed
"Identity Theft Red Flags and Address Discrepancies under the Fair and Accurate Credit Transactions Act of 2003," require financial institutions and companies offering consumer credit to institute identity theft prevention programs to detect "red flags" which might signal possible foul play. The regs go into effect Nov. 1 of this year.