The Red Flags Rule applies to financial institutions and creditors with covered accounts.
A financial institution is defined as a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a transaction account belonging to a consumer.
Creditors include finance companies, non-bank financial services companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies. Where non-profit and government entities defer payment for goods or services, they are also considered creditors.
Covered companies typically offer a credit card account, mortgage loan, automobile loan, margin account, cell phone account, utility account, checking account, or savings account, and, any other account that the financial institution or creditor offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the financial institution or creditor from identity theft, including financial, operational, compliance, reputation, or litigation risks.