New ID theft prevention rule lumps doctors with lenders, AMA objects

The Federal Trade Commission delayed for the fifth time enforcement of a new rule intended to minimize the risk of identity theft across industries which lend money but are not banks, following objections from the American Medical Association and other physicians groups.

The regulation, known as the Red Flags Rule, would require companies that fall under the general definition of "creditors" to develop and enact customized identity theft prevention programs that take into account their risk levels, previous security breaches and the nature of their business.

In the context of the new rule, a "creditor" provides goods and services and bills for them later. The term applies to credit card companies, mortgage and auto loan issuers, wireless carriers and other potential targets for identity thieves.