Wisconsin Company Says Red Flag Rules Should Help Prevent Security Breaches

GREEN BAY, Wis., Aug. 3 /PRNewswire/ -- In an effort to protect businesses and consumers from a security breach, the Federal Trade Commission (FTC) is implementing a new set of regulations, known as the "Red Flag Rules," requiring many companies to implement identity theft prevention and detection programs.  One expert says the new regulations, which are scheduled to take effect December 30, 2010, are a step in the right direction.

"Despite what many think, security breaches can happen to any business, and when they do, they can take years to overcome," said Eric Haas, president of Automated Records Management Systems (A.R.M.S.), a full-service, commercial records center which specializes in helping businesses protect their identities.  Haas says the Red Flag Rules will force businesses to be proactive in preventing security breaches.

The regulations will require businesses to identify potential "red flags," or any pattern, practice or specific activity that may indicate the possibility of a security breach.  Those most affected by the regulations are creditors, or any business that regularly extends, renews or continues credit.

Even though the Red Flag Rules won't take effect until the end of the year, businesses should act now and consider several key areas when reviewing their identity theft prevention and detection programs:

• Choose employees wisely – Complete thorough background checks and make sure all keys are returned and passwords are changed once an employee has left.
• Select a secure location to house sensitive information – Secure information in a locked room or filing cabinet and utilize alarm systems to deter break-ins.  For extra reassurance, seek out a firm that specializes in secure document protection.
• Properly destroy sensitive information – At the end of a document's retention period, securely shred the information immediately.  For larger shred jobs, consider utilizing a company that specializes in shredding.

Haas says even those businesses not directly affected by the Red Flag Rules still need to keep planning and preventing a security breach top of mind.  "Remember, information is your company's most important asset, so you can never be too careful when protecting it," he said.

Founded in 1983, A.R.M.S. (Automated Records Management Systems) is a full-service commercial records center providing information management services to businesses throughout Wisconsin and Upper Michigan.  

SOURCE Automated Records Management Systems