Discuss the Original intent of the Red Flag rule the FTC published in 2007?
The Red Flags Rule1 requires many businesses and organizations to implement a written identity theft prevention program designed to detect the “red flags” of identity theft in their day-to-day operations, take steps to prevent the crime, and mitigate its damage.
The Red Flags Rule was created by the Federal Trade Commission (FTC), along with other government agencies such as the National Credit Union Administration (NCUA), to help prevent identity theft. The rule was passed in January 2008, and was to be in place by November 1, 2008.
As the Red Flag rule widely defines creditors, many businesses (such as utilities) are required to collect personal information (such as SSN and Driver’s License Numbers) that are not needed for business purposes. This policy is contrary to the FTC’s advice to consumers that they should disclose their social security number to others only when absolutely necessary.[13] This aspect of the Red Flag rule has the unintended consequences of increasing the number of business that hold consumers' Social Security numbers thereby putting consumers at greater risk for identity theft through data theft and increasing costs for businesses who are required to secure this data.
Discuss the Original intent of the Red Flag rule the FTC published in 2007?
Explain how each of the following three conditions could be a red flag for a register disbursement scheme. a. Able, a cash register teller, is authorized to approve sales ¬refunds and she is also authorized to make inventory ¬adjustments b. Baker is a cashier who, in the last week, processed 15 ¬refunds. No other cashier processed more than 5 over that same period. Each of the transactions was for between $13.50 and $14.99. c. Over 70 percent of the refunds...
18. Which of the following is not a red flag for a scheme involving fraudulent invoices from non-accomplice vendors? MULTIPLE CHOICE a. Noting that paid was marked on every voucher that has been paid. b. Mailing addresses differing from the real vendor address. c. Deviations from the approved vendor list. d. An invoice number out of sequence. 19. For the small business, which of the following is a good way to prevent or detect fraud? MULTIPLE CHOICE a. Segregate duties. b....