Law: What 4 basic elements of the Red Flags Rule must one include in their Identity Theft Prevention Program


  1. According to “What Compliance Looks Like,” What 4 basic elements of the Red Flags Rule must one include in their Identity Theft Prevention Program?

The program must include any important patterns, activities and actions that could help in identifying a theft. It must integrate any practices in the field of business to help in detection of red flags. Thirdly, one must give a response regarding any of the red flags that could be detected to mitigate as well as to prevent theft of identities. Lastly, one must go for a program that will always be upgraded form time to time to incorporate any change concerning risks related to theft identity.

  1. Who must comply with the Red Flags Rule?

Banks and other institutions such as savings associations.

  1. What is a “financial institution?

It is a bank, or a savings association without the regards if it maintains an account for transactions to consumers or does not.

  1. What is a “creditor?

A creditor is any institution or person that is involved in the process of payments using credit cards.

  1. What is a “covered account?

It is an account that is created to meet personal or family needs that require frequent payments.

  1. What are the 5 categories of Common Red Flags?

Notices from people who have fallen as victims, enforcement of the law, changing of addresses, suspicious documents and receipt of warnings from agencies that deal with credit.

  1.  What staff members must be trained?

Employees must be trained to maintain security for any data about the firms they work for, in addition to their confidential information.

  1. From the “About Identity Theft” page (located inside the “Identity Theft” link of the site), list 3 types of Identity Theft?

Credit freezing to request for credit reports

Discrepancies of addresses by a company that reports on credit worthiness of firms and people

A fraud on credit reports

  1. What can you do to help fight Identity Theft?

One can contact customers directly to ask of their information, avoiding use of new accounts, using previous account numbers when one needs to get a new one and monitoring accounts that are covered.

  1. When dealing with credit reports, how many consumer reporting companies are there and what are their phone numbers?

They are two namely; Federal Trade Commission                                            1-877-FTC-HELP             

                       Ministry of Government and Consumer Services       1-800-889-9768