Calculating Your Risk Factor: Identity Theft

Calculating Your Risk Factor: Identity Theft
What Travel Agencies Need to Know About the Red Flags Rule

The Federal Trade Commission issued a rule in 2007, that may affect your travel agency operations. The Red Flags Rule requires "creditors" and "financial institutions" to develop written plans to prevent and detect identity theft. The rule is a section of the Fair and Accurate Credit Transaction Act of 2003, a federal law which requires the establishment of guidelines for financial institutions and creditors regarding identity theft.

Some travel agencies may fall into the category of "creditors" because they do not always receive payment in full from their clients at the time of booking. Calculating Your Risk Factor has important information that you need to know about the Red Flags Rule and helps agencies determine the level of compliance that they are required to maintain.
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