As of Nov. 1, the Federal Trade Commission has begun enforcing its Red Flags Rule, a section of the Fair and Accurate Credit Transaction Act of 2003.

The Red Flags Rule is an anti-fraud regulation that requires creditors and financial institutions with covered accounts to implement programs to identify, detect, and respond to the warning signs, or "red flags,"for identity theft. The financial regulatory agencies, including the FTC, developed the Rule, which was mandated by the Fair and Accurate Credit Transactions Act of 2003 (FACTA).

Veterinary practices are categorized as creditors because clients do not always pay in full at the time of treatment.

The FTC's Red Flags Web site, www.ftc.gov/redflagsrule, offers resources to help entities determine if they are covered and, if they are, how to comply with the Rule. The AVMA also offers resources for veterinarians who have questions about the rule at http://www.avma.org/issues/FTC_red_flags_rule.asp.