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Financial Institutions > Red Flag Solutions > Overview
The Clock is Ticking...
Red Flag Regulations require urgent action.
On November 1, leading financial institutions were required by the Federal Reserve to meet key Red Flag ruling requirements or face potential sanctions and monetary penalties.
The reason for the regulations is clear -- identity crimes are spiraling out of control. Over the past several years, FBI statistics show U.S.-based companies spent $67 billion combating cyber crime, while consumers lost $50 billion to identity theft and the ensuing recovery expenses, according to the Federal Trade Commission.
The Red Flag regulations require all financial institutions to implement identity theft protection programs, including “reasonable policies and procedures” for preventing identity theft and the ability to track “red flag” activities and notify victims.