Pamela Devata Quoted in Lawyers USA
"Lawyers Rush To Advise On New Identity Theft Rules"

Pamela Devata was quoted in the October 27, 2008 edition of Lawyers USA in the article, "Lawyers Rush To Advise On New Identity Theft Rules." The article discussed how many law firms are sending alerts to clients warning businesses about new rules ("Red Flag Rules") that require them to implement procedures to detect and respond to identify theft. These new rules apply to financial institutions and creditors. According to the article, until recently, many businesses, including health care institutions, telecommunications companies and educational institutions, did not realize they were considered "creditors" under the rules. These entities complained that they could not come into compliance in time for the original November 1 deadline, so as a result, the Federal Trade Commission has extended the deadline to May 1, 2009. Pam explained to the author that "part of the confusion is that the rules apply not only to traditional financial institutions like banks, but also to 'creditors,' a term that has been broadly interpreted by the FTC to include any entity that regularly extends credit or accepts deferred payment for services." Pam added that "the definition of creditor is enormous."

The rules require companies to develop policies to find and respond to "red flags" of identify theft. The policy must have a way of detecting red flags and must include "appropriate responses" to prevent and mitigate identify theft once a red flag is found. Pam continued that "You may just ask a person for more information and it turns out to be nothing. Or, maybe I'm going to stop access to this account, or do further investigation such as a background check, or require identification the next time someone tries to use the account."