Thursday, November 11, 2010
Wednesday, November 10, 2010
The FTC Red Flag Rule. How does it affect yor business?
On December 31,2010 the Federal Trade commission will enact a regulation that they have been attempting to enact for a few years. The Red Flag Rule will require businesses designated as "covered" businesses to provide a verifiable system of fraud detection and prevention that will protect consumers and vendors from fraudulent transactions. A partial list of those affected are:
Doctors and Dentist offices, Department Stores, Hospitals, Clinics,
Check cashing businesses, Payday Loans, Convenience Stores,
Utility Bill Payment Providers, Phone Service Payment Providers,
Cell Phone Service Providers, Business Accepting Online Payments, Checks By Phone, or In Person, Retail Establishments, Businesses That Allow Lay-Aways, Businesses That Accept Monthly Payments From Customers and Vendors, plus many more.
The Other regiulation that will affect businesses is the Fair Credit Reporting Act Safeguard Rule which bsaically states that you must have protective measures in place to safeguard client and vendor information so that it can't be stolen, or your computer system hacked into.
The biggest reasons for these regulations is the fact that ID Theft, Check Fraud, And Internet Fraud have become the top three crimes in America responsible for over $160 Billion dollars in losses per year.
The funds from these crimes are being used to fund drug trafficking and terrorism.
The crimes can be committed by the avergae person on the street to the large criminal network.
Failure to enact these rules can have a drastic effect on the financial standing of the United States.
There are other laws and regulations that interact with these rules, the U.S. Patriot Act, Gramm-Leach-Bliley Act, and various regulations in the Uniform Commercial Code.
You need to first determine if your business is considered a "covered" business. However if you look at the partial list of "covered" businesses it may be a good idea to comply anyway.
It was suggested to me on Actseed.com that I present a "canned" package for businesses concerned about these rules. I think it is an excellent idea and I will have one to you shortly.
If you are starting a business or working to make your business emerge like me, it is recommended that you include these factors in your business plan.
I know that many of you may not have heard of these rules and you will be concerned about being in compliance.
The listed fine for a compliance violation is $1,000.00 per incident per day and can lead to restrictions in operating your businesses.
The requirement is not as scary as it seems. That is why we will be creating a system that takes the burden off of you. We are planning to roll out the prototype by February 2011 or sooner.
If you could, please send me a comment on your concerns and opinions, they will prove useful in the proper creation of this system.
You can visit my websites for further info:
http://www.abernathyinvestigationgroup.8k.com/
http://www.fraudprotectionnetwork.9f.com/
http://www.reputablebusinessnetwork.9f.com/
twitter.com/fraudbuster1
facebook.com/fraudprotectionnetwork
facebook.com/abernathyinvestigativegroupllc
fraudprotectionideas@gmail.com
Make sure you let us know if you want a private response or your comment made public.
Doctors and Dentist offices, Department Stores, Hospitals, Clinics,
Check cashing businesses, Payday Loans, Convenience Stores,
Utility Bill Payment Providers, Phone Service Payment Providers,
Cell Phone Service Providers, Business Accepting Online Payments, Checks By Phone, or In Person, Retail Establishments, Businesses That Allow Lay-Aways, Businesses That Accept Monthly Payments From Customers and Vendors, plus many more.
The Other regiulation that will affect businesses is the Fair Credit Reporting Act Safeguard Rule which bsaically states that you must have protective measures in place to safeguard client and vendor information so that it can't be stolen, or your computer system hacked into.
The biggest reasons for these regulations is the fact that ID Theft, Check Fraud, And Internet Fraud have become the top three crimes in America responsible for over $160 Billion dollars in losses per year.
The funds from these crimes are being used to fund drug trafficking and terrorism.
The crimes can be committed by the avergae person on the street to the large criminal network.
Failure to enact these rules can have a drastic effect on the financial standing of the United States.
There are other laws and regulations that interact with these rules, the U.S. Patriot Act, Gramm-Leach-Bliley Act, and various regulations in the Uniform Commercial Code.
You need to first determine if your business is considered a "covered" business. However if you look at the partial list of "covered" businesses it may be a good idea to comply anyway.
It was suggested to me on Actseed.com that I present a "canned" package for businesses concerned about these rules. I think it is an excellent idea and I will have one to you shortly.
If you are starting a business or working to make your business emerge like me, it is recommended that you include these factors in your business plan.
I know that many of you may not have heard of these rules and you will be concerned about being in compliance.
The listed fine for a compliance violation is $1,000.00 per incident per day and can lead to restrictions in operating your businesses.
The requirement is not as scary as it seems. That is why we will be creating a system that takes the burden off of you. We are planning to roll out the prototype by February 2011 or sooner.
If you could, please send me a comment on your concerns and opinions, they will prove useful in the proper creation of this system.
You can visit my websites for further info:
http://www.abernathyinvestigationgroup.8k.com/
http://www.fraudprotectionnetwork.9f.com/
http://www.reputablebusinessnetwork.9f.com/
twitter.com/fraudbuster1
facebook.com/fraudprotectionnetwork
facebook.com/abernathyinvestigativegroupllc
fraudprotectionideas@gmail.com
Make sure you let us know if you want a private response or your comment made public.
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