New “Red Flag Rules” Regarding Identity Theft Prevention
Will Go Into Effect August 1

On August 1, 2009, new federal regulations enforced by the FTC will go into effect; the so-called Red Flag rules, which require businesses to take pro-active measures to detect and prevent identity theft.

Although the FTC does not appear to have specified final penalty amounts for non-compliance, it is clear that violators can be subject to significant civil penalties, which makes this important for anyone who handles personal identity information of clients or customers.

To review a bulletin which provides an overview of the Red Flag rules, as well as an appendix that discusses program guidelines to help you comply with the law, please visit www.cnapro.com/pdf/Red%20Flags%20Generic_7-14-09.pdf

Further information on the Red Flag rules can be found on the FTC website at www2.ftc.gov/bcp/edu/microsites/redflagsrule/index.shtml

You can find articles on other topics on the CNA website cnapro.com, in the risk management tab, or directly at http://www.cnapro.com/html/riskmanagement.html and please feel free to forward them to your clients.