The government says that businesses have the responsibility of making sure thieves don’t use stolen information to buy goods or open phony accounts. And to that end, the Federal Trade Commission wants businesses that might be targets of identity thieves to develop written plans to spot “red flags” that fraud could be involved and prevent it.
Starting June 1, all businesses that extend credit to customers will have to develop plans to try to prevent identity theft.
“Once the information is in the hands of identity thieves, there’s not much more the consumer can do,” said Naomi Lefkovitz, senior attorney for the FTC, which will oversee enforcement of the rule as it applies to many — though not all — businesses. “Now it’s in the hands of the businesses.”