Are Bars, Doctors & Lawyers now credit companies?
Waving the Red Flag on "The Red Flag"... The Florida Modern Whigs were tweeting out their concerns of the New Red Flag Requirement from the FTC. It's a program to "detect, prevent, and mitigate" identity theft.
The FTC says the Red Flags Rules only apply: to “financial institutions” and “creditors” with “covered accounts.”
But, what does that mean? The Whig Tweets claim: "A bar runs a tab for their regulars; however with the FTC Red Flag Law, the Bar is required to collect photo ID as they are now a credit co." and tweets warn of "if you sign a pledge card 4 a non-profit or charity, they are required to obtain your photo ID and keep it on file."
Analysis from Business Management Daily says small and mid-sized business think this new rule to protect credit fraud does not apply to them, but they could find-out with "audits, fines and class action suits."
The Wisconsin Law Journal points out doctors and lawyers could also be forced to live up to these new rules.
So if you qualify for this rule, what do you have to do?
*Develop a written program that identifies and detects the red flags of identity theft.
*Describe appropriate responses that prevent and mitigate identity theft.
*The program must be managed by the Board of Directors or senior employees.