FTC Shows That #'s Do Not Lie

In the FTC's annual Consumer Sentinel Network (CSN) report that was released in February 2010 shows identity theft was the number one complaint category (21% of all complaints) in 2009.

Red Flags Extension, Trends in ID Theft and Attorneys as “above” the law?

By Sue B. Martines J.D.

Any time there is an “exception to the rule,” as the saying goes, it feels like someone is getting off the hook.  And truth be told, most would say attorneys get off the hook all too often.   So here it comes again, with the latest argued exception to the thrice-postponed Red Flags Rule – attorneys shouldn’t have to create written policies outlining how they will prevent, detect and respond to identity fraud.

My, what a burden that might be for them!

But most laws are somewhat burdensome – especially when they’re first mandated and folks are figuring out how to comply.  So it comes as no surprise that the same has been true with businesses scrambling to determine if they are a “creditor” and thus, subject to the identity verification requirements of the “Red Flags Rule.” * The Federal Trade Commission (FTC), tasked with imposing the Rule designed to slow identity theft, lost its most recent battle defending the applicability of the Red Flags to attorneys.

In a  The Daily Record online posting, the FTC argues that as attorneys accept payments from their clients so they ought  be subject to the “creditor” requirements of the Red Flags Rule.  But this U.S. District Court for the District of Columbia sided with the American Bar Association, saying…what was it?  Ah yes, that that would be too “burdensome” on those hard-working attorneys!

Stay-tuned as the courts test the burden-ability of various acclaimed creditors between now and June 1, 2010 (the new deadline)!  And as The Record notes, the FTC can appeal the ruling.

Sue B Martines is a recovering attorney of 12 years now living in Oregon.

FTC Extends Enforcement Deadline for Identity Theft Red Flags Rule

FTC Reports -

At the request of Members of Congress, the Federal Trade Commission is delaying enforcement of the “Red Flags” Rule until June 1, 2010, for financial institutions and creditors subject to enforcement by the FTC.

On October 30, 2009, the U.S. District Court for the District of Columbia ruled that the FTC may not apply the Red Flags Rule to attorneys. Today’s announcement that the Commission will delay enforcement of the Rule until June 1, 2010, does not affect the separate timeline of that proceeding and any possible appeals. Nor does it affect other federal agencies’ ongoing enforcement for financial institutions and creditors subject to their oversight.

See FTC Entire Statement at: http://www.ftc.gov/opa/2009/10/redflags.shtm

Follow Michael McCoy on Twitter at : www.twitter.com/mccoynews

Employers offering ID Theft Services as a Voluntary Benefit. Finally!!

Below, I share a small portion of a recent article written in Business Insurance Magazine. You will find in this article additional statistics and quotes that backup our findings in "The Silent Crime" in regards to more employers and employees today are seeking identity theft services as a voluntary benefit.
The article also shares a new survey that states more people see identity theft as more then just a financial problem, they actually see it as a legal issue. As our subscribers know we have been trying to educate the consumer for many years of this fact, in our books, on our blog, and in our workshops around the world.
Maybe collectively we are all starting to make a difference.

"Continue to educate the masses one at a time and we will make a difference."
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Employers offering ID theft protection as voluntary benefit
KAREN PALLARITO
Legal service plans also becoming more common choices
Reacting to national crime statistics and marketplace demand, many group life insurers and legal service plans are offering identity theft protection as a voluntary employee benefit, experts say.
ID theft protection began turning up in voluntary benefits plans about five years ago. It's typically bundled with other types of coverage or offered as a rider, but it also may be sold as a stand-alone product.

The Society for Human Resource Management's 2008 Employee Benefits Survey showed that 24% of employers offered legal assistance among other voluntary benefits ...

In a soon-to-be-released national consumer survey, 34% of employees cited identity theft as a top personal finance event in which they were personally concerned from a legal standpoint.

"When the economy goes bad, typically we see crime go up," said Michael McCoy, a consultant to Pre-Paid Legal Services Inc. in Des Moines, Iowa, and co-author of "The Silent Crime: What You Need to Know About Identity Theft." The thieves are getting smarter, too, he said. Instead of robbing banks, they're hacking into computers and they're grabbing purses for more than the cash. "You might have a hundred bucks in there, but I just made several thousand from stealing your identity," Mr. McCoy said.

Providers cited prices for employees ranging from lows of $8 to $16 per employee per month to highs of $23 to $26, depending on the employer's size, demographics and range of services in the policy. The higher-priced products often include other legal services, such as will preparation. While most of the business is employee-pay only, some employers share the cost.

full article found at: http://www.businessinsurance.com/cgi-bin/article.pl?article_id=27082
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