Are you ready for the "Red Flags" rule?

As Helen Gunnarsson will report in more detail in the August Illinois Bar Journal, a fresh burden for lawyers is on the horizon, and the ABA, ISBA, and other bar associations are objecting on their members’ behalf. Effective August 1, a new FTC rule will oblige most lawyers to develop written protocols to detect and address the “red flags” of identity theft. As the ABA says in its statement about the rule, applying it to lawyers “would impose an undue burden on law firms, especially solo practitioners, and would accomplish very little.” Rockford lawyer J. Joseph McCoy summarizes the rule and its implications for lawyers nicely in his article “FACTA’s ‘Red Flags’ Rule May Apply To Law Firms,” which appears in the June 2009 issue of the ABA’s GP/Solo Technology eReport. The general FTC site has a helpful page consolidating its Red Flags Rule resources.
Posted on July 8, 2009 by Mark S. Mathewson

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