The Federal Trade Commission (FTC) Red Flags Rule, programming assignment help

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The Federal Trade Commission (FTC) Red Flags Rule “requires many businesses and organizations to implement a written Identity Theft Prevention Program designed to detect the warning signs – or red flags – of identity theft in their day-to-day operations.” (FTC) The Rule identifies how to plan, administer, and implement an identity theft prevention plan using four basic elements:

  • Reasonable policies and procedures to identify the red flags of identity theft that may occur in your day-to-day operations;
  • Designed to detect the red flags you’ve identified;
  • Must spell out appropriate actions you’ll take when you detect red flags; and
  • Must detail how you’ll keep it current to reflect new threats (FTC, 2013).

  It is incredibly important to safeguard sensitive customer information. Ensuring that the
company has a complete framework in place to detect and respond to identify theft will enable it to defend and secure customer information.

  Due to Red Clay Renovations collecting, maintaining, and storing customer information over the course of normal business operations, it is imperative that the company has a robust, all-encompassing framework to secure customer information from criminals and thieves. Red Clay Renovations collects customer information regarding credit checks, building plans and drawings for new homes, as well as specific customer information regarding specific special medical needs or requirements that affect new building construction, i.e. wheelchair accessible, etc. While Red Clay Renovations does not directly process mortgages, it does provide assistance to customers in filling out the required FHA paperwork and does credit checks, which each contain customer financial data relevant to the Red Flags Rule.


FTC. (2013). Fighting identity theft with the red flags rule: A how-to guide for business. Retrieved from Federal Trade Commission:

FTC. (n.d.). Red flags rule. Retrieved from Federal Trade Commission:

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