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Information
on Red Flags Rule
The
Federal Trade Commission has issued
new rules for businesses on the protection
of sensitive customer information. All
mortgage brokers will have to comply
with these new rules. These new rules
basically require all “financial
institutions” to implement written
policies to detect, prevent, and mitigate
instances of identity theft.
Here
is a list of resources to help you make
sure your company is in compliance.
For
a good general overview of the new rules
and examples of steps you can take in
your office to comply please read the
following documents put out by the FTC:
The
FTC has listed specific ways to dispose
of consumer reports. This would include
all credit reports. For more on what
you should do read:
Should
you realize there has been a breach
in your security and your customer’s
personal information might be at risk,
there are steps to follow. Read the
following document for more information:
The
FTC has also created an online tutorial
at www.ftc.gov/infosecurity.
If
you would like to read the full text
of the rule please visit: http://ftc.gov/os/fedreg/2007/november/071109redflags.pdf
The
preamble to the rules (pages 63718-63752)
provides guidance regarding the rationale
behind the rules and the scope of coverage.
The text of the FTC rules can be found
at pages 63771-63773. The Guidelines
(pages 63773-63774) provide compliance
guidance and address a series of issues
that covered entities must consider
in developing their Identity Theft Prevention
Program. The Supplement to the Guidelines
(page 63774) provides a non-exhaustive
list of 26 red flags that covered entities
may wish to consider incorporating into
their programs.
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