| Identity Theft Legislation |
F.A.C.T.A
Applies to Every Business And Individual Who Maintains, Or Otherwise Possesses, Consumer
Information For a Business Purpose.
Employee or Customer information lost under the wrong set of circumstances results in:
• Federal and State Fines of $3500 per occurrence
• Civil Liability of $1000 per occurrence
• Class Action Lawsuits with no statutory limitation
• Responsible for actual losses of Individual ($92,893 Avg.)
Red Flag Rules
Effective January 1, 2008 Mandatory November 1, 2008
(An extension of F.A.C.T.A.)
Requiring:
• A written identity theft prevention policy and mitigation plan
• Written approval of the program from Board of Directors or employee at senior management
• Mandatory training for all staff who have access to Personal Identifiable Information
• Appointment of a Security (Compliance Officer)
• Documented investigation of all contract and service providers
H.I.P.A.A.
( April 21, 2006 most recent compliance date)
Applies to Any Organization Or Individuals Who Retain or Collect Health Information. ( Offer any type of
medical benefit to their employees)
Medical information lost under the wrong set of circumstances results in:
• Fines up to $250,000 per occurrence
• Up to 10 Years Jail Time For Executives
GRAMM- LEACH-BLILEY
8 Federal Agencies and any state can enforce this law
Applies To Any Organization That Maintains Personal Financial Information Regarding its Clients or
Customers
Non Public Information (NPI) lost under the wrong set of circumstances results in:
• Fines up to $1,000,000 per occurrence
• Up to 10 Years Jail Time for Executives
• Removal of Management
• Executives within an organization can be held accountable for non-compliance both criminally and
civilly
*The FTC categorizes an impressive list of businesses as FI and these so-called “non-bank” businesses
comprise a huge array of firms that may be unaware they are subject to GLB. They include but are not
limited to:
Financial Institutions Brokers
Banks Debt Collectors
Credit Card Firms Accountants
Insurance Companies Financial Planners
Lenders Real Estate Agents
Collection Agencies Financing Car Dealers
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For a copy of a White Paper
written by: Wiley Rein & Fielding
( the law firm that represented
president Reagan and now
represents president bush)
Click Here
written by: Wiley Rein & Fielding
( the law firm that represented
president Reagan and now
represents president bush)
Click Here
