A "red flag" is anything a person might do that seems suspicious that could indicate identity theft. This would include weird behavior, providing odd documents, providing information that seems off in some way, etc. On December 18, 2010, President Obama signed into law S. 3987, a bill that removes certain businesses, including veterinary practices and other health care practices, from the FTC's "Red Flags Rule." The bill indicated that veterinary/health care practices are not required to create regulations/programs to identify possible identity theft.
Please visit the AVMA website for current information and FAQs regarding the Red Flags Rule:
The FTC website contains the complete description of the Red Flags Rule: