The so-called Red Flag Rules, designed to help protect consumers from identity theft, have been postponed four times so far. This has at least one reporter, Dave Lieber of Texas’ Star-Telegram, wondering if the interests of businesses are being held to a higher regard than our own personal security.
He takes issue with the fact that the law which led to the introduction of these rules was on the books six years ago, way back in 2003. He finds organizations complaining that they need more time to comply to be an expensive stall tactic more than anything else. Basically, organizations don’t want to comply because (a) they don’t want to have to follow the regulations and (b) they don’t want to have to take the time to develop policy and train their staff.
When, well, if — these rules ever become enforceable, businesses that provide credit services which require them to hold consumers’ personal information will have to put specific policy in place as to how they are going to protect this information and how they will react if identity theft takes place.
Some of the major players in postponing the rules ad nauseum are:
*Doctors
*Lawyers
*Small businesses
Representatives for all three groups have lobbied Congress at one time or another asking for exemptions. However, since all three groups deal with people’s personal information, it doesn’t really make sense from a consumer standpoint for any of them to be granted one. Representatives of the Federal Trade Commission have even commented to the fact that the increase in medical identity theft makes it important for doctors to be aware of this crime and take precautions now.
The new deadline for the Red Flag Rules to be enforced is December 31, 2010. But, to quote, Lieber, “Anyone taking bets that will happen?†The only thing you can do to try to hasten the process is write to your Representative and encourage like-minded individuals to do the same. It’s no secret that both money and power speak loudly in Washington, but on some occasions the consumer’s voice can speak louder. Find your representative at votesmart.org.
Until the Red Flags finally get raised Americans are left hanging out to dry wondering whether each and every organization they deal with is doing anything to protect their personally identifiable information. The sad fact however is that even when they are very strongly enforced, the regulations cannot protect you from identity theft as they do not look out for you individually but rather more for the collective whole.
Although the Red Flag initiative is a great start we all know that you cannot rely on government or businesses to protect your information. That’s why we recommend that you enroll with LifeLock. It certainly can’t hurt having one of the leading identity theft companies helping you.
We also recommend a few other identity theft protection companies and you can compare them on our homepage which you can get to from any page by clicking on our logo.