Banks Doubt They Can Meet Red Flag Deadline

Almost half of all banks doubt they can meet the Nov. 1 Red Flag compliance deadline, according to a new survey that echoes other surveys and industry feedback received by BS&T.

Of 300 financial institutions polled by Information Security Media Group, the Princeton, N.J., publisher of 47 percent said they would barely meet the deadline, wouldn't make it or didn't know. Only 3 percent said they were already completely compliant.

The Red Flag rule requires financial institutions to develop identity theft prevention programs that can identify patterns in consumer account behavior and flag those that could be of high risk. This survey, administered in June was recently released.

Many vendors have applications to help vendors comply with the Red Flag rule, including one just announced by Jack Henry & Associates, another from Fidelity National Information Services and another from Entrust.