By August 1, 2009, new federal regulations-called the "Red Flag rules"-will require utilities to develop or codify programs that protect their customers from identity theft. These rules are the product of a six-year-old law, the Fair and Accurate Credit Transactions Act of 2003, which is perhaps best known for giving American consumers the right to a free credit report. The Red Flag rules are designed to hold financial institutions and other "creditors," including utilities, accountable for identifying, detecting, and responding to the patterns, practices, or specific activities-"red flags"-that could indicate fraud threats to customer accounts. Utilities that don't comply risk enforcement actions from the Federal Trade Commission (ftc).
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