Red Flag Rule on Track to Charge U.S. Businesses Millions of Dollars in Fines

Wed, 02/23/2011 - 6:22am
MURRIETA, Calif., /PRNewswire/ -- The "Red Flag Rule," an obscure federal regulation that requires companies or businesses to include an information security policy as an integral part of their overall operations, can inflict a destructive financial blow to businesses that are not aware of the implications of non-compliancy.

"Think you're not at risk? Think again ... The fact is 52% of identity theft occurs in the workplace and as a result stringent policies and procedures have been federally mandated for companies to protect employee and client non-public information. Delaying the implementation of this requirement is a risky proposal, as the fines for non-compliancy, ranging from $1000 to $250,000 or more, could significantly affect a company's bottom line," says Carl Clifford, a leading information security expert.

Clifford continues, "Company executives can't think of this solely as an IT problem. However, having this requirement of implementing a security policy and training the employees also doesn't need to be burdensome or expensive. My 10 to 12 minute no-cost personal consultation is clear-cut and straightforward. It shows the practicalities of this legislation and the simplicity in the execution of a comprehensive security strategy for your business. If you're an HR and/or risk management professional, I can assist you in applying this federal mandate to your company, saving you countless hours and thousands of dollars trying to attempt this yourself."

Mr. Clifford is a leading authority in the protection of personal data and the Red Flag Rule that makes companies financially liable if any personal data of clients or employees is stolen and is used fraudulently.

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