It’s Law

Section 114 of the FACT Act

Compliant Deadline

Nov. 1, 2009

Fines

Initial Fine $3600 Per Independent Violation

Recurring Fines $16,000 Per Day

Who Must Be Compliant

If you collect, store or share non-public information from customers such as Social Security numbers, and/or banking information… or if you have customers complete a credit application and/or forms containing non-public information, you or your 3rd party service providers run credit and/or background checks and handle debt collection for your business, you MUST comply with this Federal Law or be subject to significant fines and penalties!

Federal Trade Commission - The FTC is also authorized to bring enforcement actions in federal court for violations. In some cases, the FTC may bring an initial action for up to $3,600 in penalties for each independent violation of the rule.  Repeated violations are $16,000 per day.

State Enforcement - The states are also authorized to bring actions on behalf of their residents and may recover up to $1,000 for each violation. In addition, the states may recover its attorneys’ fees if successful in such action.

Civil Liability - Each consumer may be entitled to recover actual damages sustained from a violation. This could be very large and consumers may be able to bring a class action suit seeking potentially massive damages. In addition, successful plaintiffs may recover reasonable attorneys’ fees 

Healthcare Providers

Hospitals, Healthcare Facilities, Chiropractors, Mental Health Facilities, Hospice Assisted Living, Dentist and Facilities, Nursing Homes, Medical Centers, Eyewear and Optometrist, Physicians

Educational

Private Schools, Universities, Colleges

Motor Vehicle Industry

Automobiles, Motorcycles, Marine, Recreational Vehicles, Motor Sport, Air Craft

Utilities, Government

Utilities, Telecommunications (Wireless & Landline), Cable TV Companies, Municipalities

Financial Institutions

Banks, Credit Unions, Mortgage Lenders, Mortgage Brokers

Insurance

            Companies, Brokers, Agents

Retailers

             Online, Off Line

Deferred Payment Providers

Payday Loans, Check Cashiers

Attorneys

If you are a business that falls under HIPAA, Gramm - Leach Bliley, or FACTA, it doesn’t necessarily mean you are compliant as far as the new laws pertaining to Identity Theft and Security Data Breaches. Each business must do their due diligence in determining if they need to be compliant.   

What You Must Do To Be Compliant

Regardless of the other federal laws that may affect your business, the FTC  is requiring these things from every business regardless of size or type of business.

• You need a written Red Flag privacy & security policy addressing the FTC’s 26 questions plus those to your particular business model for your ‘covered accounts’ in place regarding Identity Theft.   You need someone to oversee your privacy policy.
• You need to train employees in the true problems of Identity Theft.
• Detect & Prevention – Name and Address Verification (more than two forms of ID)
• Mitigation - You must have a plan to solve a case of identity theft.
• Data Breach – You must have a Data Breach Response Plan.

Don't know how to develop your Red Flag policy, train your employees or how to find the right mitigation plan?  Many programs are available but do they address all the issue?  Many programs are available, but at what price? 

What We Do To Make You Compliant