ADRS- FACTA Red Flag Rules
The new FACTA Red Flag Rules have gone into effect, and must be complied with by May of 2009. FACTA stands for Fair And Accurate Credit Transactions Act. The Federal Trade Commission (FTC) is now strongly recommending mandatory employee trainings to educate every employee about these new laws because of the prevalence of identity theft at the workplace. There is significant liability exposure to every business, including class action lawsuits with no statutory limits. This applies to employers of all sizes and in all industries. See this News Story.
We specialize in helping employers mitigate liability by complying more fully with FACTA, as well as HIPPA and Gramm, Leach, Bliley (GLB). Our team members are all Certified Identity Theft Risk Management Specialists, qualified to assist in the employee trainings. (See what this qualification means here: CITRMS) We also provide the necessary document package required for effective implementation. This system if properly implemented can provide you with an affirmative defense, which is why it is commonly referred to as the "Affirmative Defense Response System".
If you would like to further research the FTC's position on this issue, see the FTC's Guide For Small Businesses.
See also this article from Risk Management Magazine