Red Flags Rule

The FTC Red Flags Rule requires dealers (among other businesses) to create and implement a plan to deter identity theft. The rule requires you to identify a series of red flags -- patterns, practices or specific forms of activity that indicate a possible risk of identity theft – and check the information provided by customers carefully to ensure they’re the person they claim to be.

AFIP, through Member Benefits Services, Inc., provides two inexpensive solutions to help you generate the required written Red Flags Rule program and train your employees.

DealerAide: Red Flags Rule Support

Submit a short form and receive a customized program template in return! Comes with a one-hour orientation session and the supplies you need to get started...
More information

The F&I Manager’s Guide to the Red Flags Rule

This do-it-yourself version of the turnkey program gives you instructions on creating your dealership’s program and training personnel and comes with the supplies you need to get started... More Information

Why They Work

Protects those responsible – the board of directors and upper-level management
Managed by an appointed Red Flags Rule Compliance Officer
Mid-level managers (F&I directors, sales managers) respond to red flags (possible indicators of ID theft)
F&I personnel concentrate on selling aftermarket products and making deals – they only collect and verify customer information
No additional F&I forms
Identity Theft Prevention Signs warn identity thieves to go elsewhere to steal a car and show customers you’re prepared to protect their identities