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Part 2 of Red Flags Rule Analysis Looks at Impact on Service Providers

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NAID received considerable favorable feedback from readers on NAIDnews article The Red Flags Rule in Perspective, Part I, in which NAID CEO Bob Johnson explained the impact of Red Flags on those who are primarily subject to the Rule.  Included in the analysis was an explanation of what organizations were covered (about ‘more than 10,000 for every NAID member” as the article put it), and what they must do to comply.

Part II of the two-part series is about to appear in the September edition of the quarterly journal.  In the second installment, Johnson turns his attention to how the Rule affects service providers, both as covered entities, if they determine they are such, and as service providers to RFR covered entities. In the article, Johnson stresses that service providers that have taken a few basic steps, backed up with a basic understanding of the Red Flags Rules principles, will have a great story to tell; one very likely to win them a significant number of new accounts.

In addition to the analysis, the article also contains a sample of a Red Flags Rule “Program” specifically created for service providers who may also be covered entities (e.g., they are in possession of client credit information).