(301) 760-7604

Aerstone Product Image Red Flags

Red Flags Rule Compliance

A Strategic Approach to Identity Theft Prevention

Use Cases


Red Flag Rule, also known as Identity Theft Rules, were established by the Federal Trade Commission (FTC) to combat identity theft and safeguard customer information.

This law requires establishing and maintaining a program to identify, detect, prevent, and mitigate identity theft for “covered accounts” in day-to-day operations for financial institutions and creditors.

This definition is loose enough to apply to a wide range of companies that hold “transaction accounts” belonging to a consumer, such as brokerage firms or mutual funds, banks, savings and loan associations, mutual savings banks, credit unions, and even public utilities.

Aerstone can work with your organization to identify red flags, develop the necessary privacy and security policies, and conduct staff training to ensure full compliance with FTC Red Flags requirements.

When it comes to Red Flag Rules, we focus on two important things. First, we aim to reduce the occurrence rate and severity of potential breaches and bolster your cybersecurity posture. Secondly, we aim to mitigate your liability in the unfortunate event of a breach occurrence. By effectively addressing both these aspects, we enable you to significantly diminish your vulnerability to losses across both sides of the equation.



Why do you need to achieve Red Flags RULE Compliance?

A Proactive and Responsible Approach to Safeguarding Your Business

Legal Requirement

Click to Learn More

Legal Requirement

The Red Flag Rules are regulations established by the Federal Trade Commission (FTC) under the Fair and Accurate Credit Transactions Act (FACTA). These rules mandate certain businesses and organizations to develop and implement an Identity Theft Prevention Program. Compliance with these rules is not optional for covered entities; it’s a legal obligation.

Customer Trust

Click to Learn More

Customer Trust

Demonstrating a commitment to protecting customer information builds trust. Customers are more likely to engage with businesses that take their privacy and security seriously. Compliance with Red Flag Rules showcases that the organization is proactive about safeguarding sensitive data, leading to enhanced customer loyalty and satisfaction.

Mitigating Identity Theft Risk

Click to Learn More

Mitigating Identity Theft Risk

Implementing a robust Identity Theft Prevention Program helps organizations identify and respond to potential identity theft risks. By having procedures in place to detect “red flags” – suspicious activities that could indicate identity theft – organizations can take timely action to prevent fraudulent activities and minimize damage.

Financial Protection

Click to Learn More

Financial Protection

Identity theft incidents can result in financial losses for the affected individuals and the organizations involved. Businesses can face legal liabilities, financial penalties, and reputational damage if they fail to protect customer information adequately. Being Red Flag compliant helps mitigate these risks by demonstrating due diligence in preventing identity theft.

Avoid Penalties

Click to Learn More

Avoid Penalties

Non-compliance with Red Flag Rules can lead to regulatory enforcement actions, fines, and legal consequences. Organizations neglecting their responsibilities under these rules could face severe penalties, damaging their reputation and financial stability.

Ready To Ensure Red Flags Rule Compliance?
Request a consultation with our experts to explore tailored solutions for your organization’s identity theft prevention requirements.

Why Aerstone?

Elevate Your Security Posture Beyond Compliance

Our Experience Sets Us Apart

Aerstone is an NSA-certified vulnerability assessor. We approach each engagement with the highest levels of professionalism, determination, and creativity, honed by years of working with security professionals across the military, intelligence community, civilian government, and private industry.

End-to-End Support

Aerstone offers a comprehensive suite of services from policy creation to staff training. We guide you through every step of the compliance process, ensuring your organization is well-prepared and equipped to handle identity theft risks.

Efficiency and Effectiveness

Our methodologies are designed to maximize efficiency and effectiveness. We streamline processes and deliver timely results, helping you achieve compliance goals without unnecessary delays.

Take the first step towards Red Flags Rule compliance.
Contact us to discuss your organization’s specific needs and learn how we can assist you in safeguarding sensitive information.

Our Approach

Identify, Detect, Prevent, Mitigate, and Maintain


Customized Business-Specific Red Flags

Every business possesses distinct processes, customer interactions, and vulnerabilities. We specialize in pinpointing business-specific identity theft “red flags.” These include patterns, practices, or activities that indicate a potential risk of identity theft.


Seamless Red Flag Detection Procedures

We work with you to establish streamlined detection mechanisms. Whether it’s monitoring account activity, verifying customer identities, or cross-referencing data, our experts help you create a practical detection system. Swiftly recognizing potential threats empowers your organization to respond efficiently and minimize identity theft risks.

Prevent and Mitigate

Actionable Red Flag Response

Identifying Red Flags is just the beginning; the true strength lies in your response. We work with you to define actionable steps when red flags arise. This could mean freezing an account temporarily, verifying customer details, or launching internal investigations. A well-structured response plan prevents and reduces the impact of identity theft. 


Sustainable Red Flags Program

Staying Red Flags compliant demands consistent effort. We aid in program maintenance and updates. As a part of our approach, we designate responsible teams, schedule regular reviews, and help you adapt procedures to evolving threats. We help seamlessly integrate compliance efforts into your operations, ensuring Red Flags compliance remains a steadfast component of your ongoing security measures.

Partner for Compliance
Partner with us to navigate the complexities of Red Flags Rule compliance. Let’s work together to ensure your organization’s security and regulatory adherence.