US is requiring companies to defend against identity theft

With identity fraud on the increase, the federal government is stepping up efforts to make sure businesses are on the alert — especially financial institutions and other companies that issue credit cards.

The government says that businesses have the responsibility of making sure thieves don't use stolen information to buy goods or open phony accounts. And to that end, the Federal Trade Commission wants businesses that might be targets of identity thieves to develop written plans to spot "red flags" that fraud could be involved and prevent it. Starting June 1, all businesses that extend credit to customers will have to develop plans to try to prevent identity theft.