FTC Offers "Red Flag" Compliance Website for Design of Identity Theft Programs On May 1, 2009, the Federal Trade Commission (FTC) launched a new webpage designed to help "creditors" and "financial institutions" comply with "red flag" rules. The "red flag" rules are designed to identify and prevent identity theft. The website, Fighting Fraud with the Red Flags Rule: A Guide for Business, describes the entities covered and how to comply with its provisions.
Mortgage brokers and mortgage lenders that provide credit, or arrange for credit to be provided, are required to establish policies and procedures to prevent identity theft. A real estate agent may be considered a "creditor" if s/he regularly arranges for credit to be extended, e.g. regularly pulls credit reports, suggests potential lenders or helps with the loan applications.