Wednesday, Feb. 20, 2008, 07:00 PM UPDATED 11:59 AMBy Nick Zulovich
PORTLAND, Ore. — In addition to announcing that red flag rules compliance program, which was developed in collaboration with Hudson Cook, the company announced it is offering an online seminar to answer dealer questions about the new requirements.
Red flag expert Michael Benoit, a partner of Hudson Cook, will be on hand Feb. 27 for an online seminar hosted by Compli called "Red Flag Rules: The Devil is in the Details."
He will offer an overview of the different red flags as identified by the Federal Trade Commission.
The company outlined of some of the topics covered in the event:
—The content of 26 different red flags and their importance to dealerships.
—How identity theft will impact stores.
—Recent significant developments.
—How to implement an effective compliance program to help ensure best practices and preclude costly errors.
—A question an answer period to give dealership personnel the chance to ask their own questions about what these new requirements will mean to their stores.
The seminar will be held Feb. 27 at:
—8:30 a.m. to 10 a.m. PST
—9:30 a.m. to 11 a.m. MTN
—10:30 a.m. to 12 p.m. Central
—11:30 a.m. to 1 p.m. Eastern
In order to participate Compli outlined system requirements for PC-based attendees. These include Windows 2000, XP Home, XP Pro, 2003 Server or Vista.
For Macintosh-based attendees, they need Mac OS X10.3.9 (Panther) or newer.
Officials said space is limited, so to register visit .
Compli Releases Red Flag Content for Dealers
As mentioned earlier, in collaboration with Hudson Cook, Compli announced the launch of red flags compliance content for dealers.
According to officials it is available free of charge for clients of Compli's Dealership Compliance Management System.
The new red flags program specifically addresses the content and training requirements associated with this compliance for dealerships.
The company noted that dealers have traditionally relied upon disparate manual processes to verify a client's identity. However, with expanded federal rules and guidelines specific to identity verification and ID theft prevention, car dealers are required to implement an Identity Theft Prevention Program that identifies and addresses red flags.
More specifically, red flags are patterns, practices or specific activities that indicate the possible existence of identity theft.
Due to the subjectivity involved in implementing an effective Identity Theft Prevention Program, there is a need for comprehensive and continuous training beyond that which dealers have historically undertaken, executives stressed.
According to the new red flag rules, dealers must put new processes in place that identify patterns, practices and credit activity that suggest the existence of identity theft. These red flags are intended for use as part of a dealer-specific identity theft detection, prevention and mitigation program, the company explained.
Compli's mew red flags program consists of:
—Internal audit form
—Legal article: "Red Flag Warning" by Michael Benoit, of Hudson Cook
—Online link library with red flag online resources
"The new red flags rule is just another example of the increased regulatory burden being imposed on auto dealers. The objectives are sound, but new requirements like these are increasing the need for dealers to reconsider their operational compliance structure, as well as their training and support functions," explained Benoit.
"In working with Compli on this new red flags program, our goal is to provide pertinent and relevant information to help U.S. dealerships better understand their red flag rules' obligations, so they can take the steps necessary to implement effective compliance standards in their dealerships," he concluded.
For more information on Compli and Hudson Cook services, visit or , respectively.