CMAA Practice Exam 2025 – Complete Guide for Exam Prep

The term for the rule requiring health care providers to have a written identity theft detection and prevention program is known as the Red Flag Rule. This regulation was established under the Fair and Accurate Credit Transactions Act (FACTA) and mandates that businesses, including healthcare providers, create and implement a program to detect, prevent, and mitigate identity theft. This requirement is particularly relevant in the healthcare sector, where sensitive personal information is frequently handled and at risk of being misused.

The Red Flag Rule focuses on identifying "red flags," or warning signs of potential identity theft, which can include suspicious account activity or discrepancies in personal information. By having a written program, organizations are better equipped to respond to these indicators and protect their patients' sensitive data. This responsibility highlights the importance of vigilance in safeguarding personal health information amid rising concerns about identity theft in a digital age.