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The FTC Red Flags Rule — How It Works

Law360 (May 28, 2009, 12:00 AM EDT) -- On Aug. 1, 2009, the Federal Trade Commission will begin enforcing its “Red Flags” Rule, 16 C.F.R. § 681.2, designed to help prevent and mitigate identity theft.

The rule does not address the need for data security measures, which help prevent identity thieves from obtaining unauthorized information. Instead, the purpose of the rule is to prevent identity thieves from using information they have illegally obtained.

Probably most of us think about identity theft as something that banks and credit card companies should watch out for, but...
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