By Louie Castoria and Lori S. Nugent, partners, Wilson Elser Moskowitz Edelman & Dicker LLP

Data theft is the fastest-growing crime in the United States. Law enforcement has been struggling to catch thieves who use computers to commit fraud. In an equivalent of the “Whack a Mole” game, every time law enforcement gets the word out and plugs a software “hole,” thieves pop up and commit crimes using a different software vulnerability. Coincidentally, the federal government has a huge debt and is looking to refill its coffers.

The new Federal Trade Commission “red flags rule,” designed to fight data theft, applies to any business that receives payment for services after, rather than when, services are rendered, which includes most insurance agencies and brokerages.

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Louie Castoria



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