On November 9, 2007, the Federal Trade Commission, Office of Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration (the Agencies) jointly issued the final rules and guidelines implementing Section 114 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), and the final rules implementing Section 315 of the FACT Act. The rules implementing Section 114 require financial institutions and creditors to develop and implement a written Identity Theft Prevention Program to detect, prevent and mitigate identity theft in connection with their customer/client ‘covered’ accounts and to establish internal policies and procedures to protect them. These rules and guidelines became effective January 1, 2008, and require any business extending credit to comply by November 1, 2008. However, due to the uncertainty and confusion within many industries, including healthcare, regarding the applicability of the rules, the Federal Trade Commission’s enforcement of the rules has was delayed until December 31, 2010 to allow these entities time to take appropriate care and consideration in developing and implementing their programs. Read more on the “FTC Enforcement Policy”.
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What is identity theft, and how can it affect you, the customers you serve, and your business? Get more information here, and understand how to protect yourself. With more than 250,000,000 (YES - 250 MILLION!) security breaches in the United States alone since January 2005, it's much more prevalent than most realize, and identity theft predators exercise no prejudice! To find out the threat as of today, check out www.privacyrights.org, and review these instructions.
The Red Flags Rule Applies to Healthcare...ID Thieves' New Target-In March 2004, Joe Ryan got a collection notice from an agency for LittletonAdventistHospital near Denver, Colorado. They wanted payment for surgery totaling $41,188. Ryan, a Vail pilot, had never set foot in that hospital. Obviously there was some mistake. "I thought it was a joke," says Ryan. But when he called the agency, nobody laughed. Someone named Joe Ryan, using Ryan's Social Security number, had indeed been admitted for surgery. He figured clearing this up would take just a few phone calls. Two years later, Ryan continues to suffer from the damage to his credit rating and still doesn't know if his medical record has been cleared of erroneous information. "I'm desperately trying not to go bankrupt," he says. Joe Ryan was the victim of a little-known but frightening type of consumer fraud that is on the rise: medical identity theft. Unlike financial identity theft, where crooks steal your personal information to rack up bogus credit card and other charges, medical identity theft involves using your name to get drugs, expensive medical treatment and even fraudulent insurance payouts. For some unfortunate victims, medical identity theft is the last straw; after crooks steal their wallet and max out the credit cards, they turn to the health insurance card for even more freebies. "An insurance card is like a Visa card with a $1 million spending limit," says Byron Hollis, national anti-fraud director of the Blue Cross and Blue Shield Association. - Reader’s Digest, November 2006
How does Red Flags Rule affect Healthcare-Click Here
ARTCorp can get you started, and put you on the path to pro-active and compliant operations - the rest is up to you! Unlike other CPAs, Attorneys, Financial Consultants and Business Advisors offering Red Flags Rule Compliance Kits over the Internet at upwards of $500 for a one-time packaged plan, and $150 monthly for regular review and update to the plan, ARTCorp provides a comprehensive kit to guide you in documenting your business's Identity Theft Prevention Program for only $99.95. If you would rather we do all the work, a customized plan will be tailored for your business based on an on-site or telephonic review of your operations for only $299.95. This includes our highly credentialed and experienced staff's time and preparation of all Program supplies and materials. And remember, these are one-time charges. There are NO recurring fees, membership obligations, or other hidden costs associated with purchase because the reality is, your business, and no one else, incurs the risk and liability, not to mention legal and financial repercussions, for failure to document and effectively implement the Red Flags Rule regulations. To learn more about, or purchase our Identity Theft Prevention Program Kit, click here.
Still not sure if the Red Flags Rule applies to your business? Take our Quiz!
