On Wednesday, the Federal Trade Commission (FTC) announced a six month delay in enforcement of a new regulation, known as the ‘Red Flags’ rule, which would require government entities that defer payment for goods or services to implement identity theft prevention programs.  As part of the Fair and Accurate Credit Transactions (FACT) Act of 2003, the ‘Red Flags’ rule was scheduled to go into effect on November 1. This six-month delay gives entities until May 1, 2009 to develop and implement written identity theft prevention programs.  To view the FTC press release, click here. 

The new regulations require financial institutions and creditors to develop and implement written identity theft prevention programs.  The FTC has determined that in cases where government entities defer payment for goods or services, they may be considered creditors.