Which problem was primarily targeted by the Red Flags Rule?

The Red Flags Rule was primarily designed to address consumer identity theft. This regulation requires financial institutions and creditors to implement specific programs to detect, prevent, and mitigate identity theft. By focusing on consumer identity theft, the rule aims to identify "red flags," which are warning signs that a person's identity may be compromised.

This proactive approach is essential because identity theft can have severe consequences for consumers, including financial loss and damage to credit ratings. Institutions are mandated to have procedures in place to identify these warning signs and to respond appropriately when they are detected, thereby protecting consumers from the potential harms associated with identity theft.

The other options, while related to privacy and data protection, do not encapsulate the primary aim of the Red Flags Rule. A data security breach primarily concerns the unauthorized access or exposure of sensitive information, which the Red Flags Rule addresses indirectly through its focus on identity protection. Unauthorized access to information by an employee relates to internal security measures, which is a different area of concern. Inaccurate information in a consumer credit report is addressed by different regulations aimed specifically at credit reporting agencies and consumer rights to challenge inaccuracies, thus falling outside the primary focus of the Red Flags Rule.