{"id":352686,"date":"2016-04-04T10:42:08","date_gmt":"2016-04-04T15:42:08","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/online-scams\/what-is-the-identity-theft-red-flags-rule.html"},"modified":"2024-05-01T23:40:24","modified_gmt":"2024-05-02T04:40:24","slug":"what-is-the-identity-theft-red-flags-rule","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/online-scams\/what-is-the-identity-theft-red-flags-rule.html","title":{"rendered":"What Is the Identity Theft Red Flags Rule?"},"content":{"rendered":"\n
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What Is the Identity Theft Red Flags Rule?<\/h1>\n
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\n By Hannah Hilst<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The Identity Theft Red Flags Rule is a federal law. It requires financial institutions and certain businesses to help protect consumers against identity theft.<\/p>\r\n

You’ve seen this rule in action if your credit card issuer or bank has ever called you about suspicious activity. Its name comes from the red flags that can appear on your accounts due to identity theft. This rule compels them to ensure you won’t be a victim of identity theft.<\/p>\r\n

The red flags rule stems from the Fair and Accurate Credit Transactions Act of 2003. This law amended the Fair Credit Reporting Act <\/a>(FCRA).<\/p>\r\n

Under this law, financial institutions must create comprehensive anti-fraud programs. These programs can help you discover and contain identity theft issues<\/a> quickly.<\/p>\r\n

Who Is Subject To the Rule?<\/h2>\r\n

Federal law typically requires the following entities to adopt identity theft prevention programs (ITPPs):<\/p>\r\n