Red Flags Rules


Red Flags Rules

After several delays, the Red Flags Rule was implemented on December 31, 2010.  The Red Flags Rule is a set of regulations developed by the FTC requiring "creditors" to implement written identity theft prevention and detection programs into their day-to-day operations. 

Recent changes in the law have exempted many ambulance agencies from being defined as a "creditor" however some agencies might still need to comply with the Red Flags Rule.  The term "creditor" is defined as an entity that "regularly and in the ordinary course of business:

  1. Obtains or uses consumer reports, directly or indirectly, in connection with a credit transaction;
  2. Furnished information to consumer reporting agencies in connection with a credit transaction; or
  3. Advances funds to or on behalf of a person, based on an obligation of the person to repay the funds or repayable from specific property pledged by or on behalf of the person."

If your agency falls under one of the above-mentioned categories, you must comply with the Red Flags Rule. 

Systems Design has implemented an identity theft program that is compliant with the Red Flags Rule.  The program identifies activities on a patient's account that might be a "red flag" of possible identity theft and how we will respond.   You will find a copy of our program at the following link: Click Here

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