Episode 44 — Identity Theft Prevention: Red Flags Rule in Practice

The Red Flags Rule is designed to help organizations detect, prevent, and mitigate identity theft. This episode explains how financial institutions and certain creditors must develop programs that identify warning signs—or “red flags”—of potential fraud. We’ll review the categories of red flags, from suspicious documents to unusual account activity, and discuss how compliance programs integrate monitoring and staff training.

Understanding the Red Flags Rule provides insight into how regulators expect proactive risk management. For the exam, focus on the definitions, covered entities, and the purpose of these obligations in consumer protection. Produced by BareMetalCyber.com