Motorists Mutual Insurance Co., a leader in the property and casualty insurance industry, is giving its commercial policyholders online access to a “Red Flag” planning guide and frequently asked questions developed by CyberScout, America’s leading identity theft resolution and education services provider, they can use to create identity theft prevention and detection plans – at no additional cost.
Beginning May 1, businesses that offer payment plans – including car dealers, medical offices and banks that issue credit cards – will have to comply with the Federal Trade Commission’s (FTC) Red Flags Rules, which aim to curb identity theft.
“Many small businesses just don’t have the human resources personnel to respond to this new government-mandated requirement,” says Grady Campbell, Motorists’ vice president of Property and Casualty Marketing. “Motorists understands it’s difficult to keep on top of these legislative changes, especially when so many business owners are concentrating on dealing with the current economic climate, so we’ve partnered with the experts at CyberScout to help.”
Red flags are legitimate warning signs that may indicate identity theft. The rules identify 26 specific red flags, including everything from credit freezes and fraud alerts placed on a consumer’s credit report to an applicant failing to answer basic questions about his or her own financial history. Too many flags on an application may be evidence of identity theft.
Companies must identify which red flags may occur in their business, detect red flags in real time as credit applications are processed, and respond accordingly. Responses may include denying the credit application or alerting law enforcement, depending on the case.
“With 11 million U.S. businesses affected by Red Flags Rules, which require immediate action to ensure compliance, this is one of the most important issues affecting companies of all sizes in 2009,” said Matthew Cullina, CEO of CyberScout. “As they already offer our identity restoration services to their personal lines policyholders and our data breach resolution services to their commercial lines policyholders, Motorists is continuing its industry-leading position by now helping business owners comply with federal regulations to better protect their consumers and their personally identifiable information.”
CyberScout’s latest industry report, “New Tools to Combat Identity Theft,” with contributions from Betsy Broder, assistant director of the FTC’s division of privacy and identity protection, includes an explanation of the Red Flags Rules, how businesses can comply with them and how the regulations may be enforced.
