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Feds Delay ‘Red Flags’ Enforcement Deadline

Jun 1, 2010 | Reprints | Unlock Link | Print

Implementation of the so-called Red Flags data security rule has been delayed for the fourth time.

The Federal Trade Commission said last week implementation of the rule, which requires financial institutions and companies handling sensitive customer data like credit card, bank account and Social Security numbers to have programs to detect and respond to security breaches, was delayed until Dec. 31.

The rule was originally scheduled to go into effect on April 2, 2009, but one day before the deadline, the FTC delayed implementation until Aug. 1, 2009.

Then, in July 2009, the FTC delayed implementation until Nov. 1 of that same year. That was followed on Oct. 30, 2009, with a delay until June 1 of this year.

The latest delay was reportedly made in response to request of several lawmakers.

Banking & Lending