[Ord. No. 081027B §1, 10-27-2008]
A.
The
City of Willard ("utility") has developed this Identity Theft Prevention
Program ("program") pursuant to the Federal Trade Commission's Red
Flag Rule ("rule"), which implements Section 114 of the Fair and Accurate
Credit Transaction Act of 2003, pursuant to 16 C.F.R. Section 681.2.
This program was developed with oversight and approval of the Program
Administrator and Board of Aldermen. After consideration of the size
and complexity of the utility's operations and account systems, and
the nature and scope of the utility's activities, the Program Administrator
and the Board of Aldermen determined that this program was appropriate
for the City of Willard, and therefore approved this program on October
27, 2008.
B.
Program Purpose And Definitions.
1.
Fulfilling requirements of the red flags rule. Under
the red flags rule, every financial institution and creditor is required
to establish an "Identity Theft Prevention Program" tailored to its
size, complexity and the nature of its operation. Each program must
contain reasonable policies and procedures to:
a.
Identify relevant red flags for new and existing covered accounts
and incorporate those red flags into the program;
b.
Detect red flags that have been incorporated into the program;
c.
Respond appropriately to any red flags that are detected to prevent
and mitigate identity theft; and
d.
Ensure the program is updated periodically, to reflect changes in
risks to customers or to the safety and soundness of the creditor
from identity theft.
2.
Red flags rule definitions used in this program.
a.
The Red Flags Rule defines "Identity Theft" as fraud
committed using the identifying information of another person and
a "Red Flag" as a pattern, practice or specific activity
that indicates the possible existence of identity theft.
b.
According to the rule, a municipal utility is a creditor subject
to the rule requirements. The Rule defines "Creditors" to include finance companies, automobile dealers, mortgage brokers,
utility companies and telecommunications companies. Where non-profit
and government entities defer payment for goods or services, they,
too, are to be considered creditors.
c.
All the utility's accounts that are individual utility service accounts
held by customers of the utility whether residential, commercial or
industrial are covered by the Rule. Under the rule, a covered
account: is:
(1)
Any account the utility offers or maintains primarily for personal,
family or household purposes, that involves multiple payments or transactions;
and
(2)
Any other account the utility offers or maintains for which
there is a reasonably foreseeable risk to customers or to the safety
and soundness of the utility from identity theft.
d.
"Identifying information" is defined under the rule
as any name or number that may be used, alone or in conjunction with
any other information, to identify a specific person including: Name,
address, telephone number, Social Security Number, date of birth,
government issued driver's license or identification number, alien
registration number, government passport number, employer or taxpayer
identification number, unique electronic identification number, computer's
Internet protocol address or routing code.
[Ord. No. 081027B §1, 10-27-2008]
A.
In
order to identify relevant red flags, the utility considers the types
of accounts that it offers and maintains, the methods it provides
to open its accounts, the methods it provides to access its accounts,
and its previous experiences with identity theft. The utility identifies
the following red flags in each of the listed categories:
1.
Alerts, notifications or warnings from consumer reporting
agency.
a.
A fraud or active duty alert is included with a consumer report.
b.
A consumer reporting agency provides a notice of credit freeze in
response to a request for a consumer report.
c.
A consumer reporting agency provides a notice of address discrepancy.
d.
A consumer report indicates a pattern of activity that is inconsistent
with the history and usual pattern of activity of an applicant or
customer, such as:
(1)
A recent and significant increase in the volume of inquiries;
(2)
An unusual number of recently established credit relationships;
(3)
A material change in the use of credit, especially with respect
to recently established credit relationships; or
(4)
An account that was closed for cause or identified for abuse
of account privileges by a financial institution or creditor.
2.
Suspicious documents.
a.
Documents provided for identification that appear to have been altered
or forged.
b.
The photograph or physical description on the identification is not
consistent with the appearance of the applicant or customer presenting
the identification.
c.
Other information on the identification is not consistent with information
provided by the person opening a new covered account or customer presenting
the identification.
d.
Other information on the identification is not consistent with readily
accessible information that is on file with the financial institution
or creditor, such as a signature card or a recent check.
e.
An application appears to have been altered or forged, or gives the
appearance of having been destroyed or reassembled.
3.
Suspicious personal identifying information.
a.
Personal identifying information provided is inconsistent when compared
against external information sources used by the financial institution
or creditor, for example:
b.
Personal identifying information provided by the customer is not
consistent with other personal identifying information provided by
the customer. For example, there is a lack of correlation between
the SSN range and date of birth.
c.
Personal identifying information provided is associated with known
fraudulent activity as indicated by internal or third-party sources
used by the financial institution or creditor. For example:
d.
Personal identifying information provided is a type commonly associated
with fraudulent activity as indicated by internal or third-party sources
used by the financial institution or creditor. For example:
e.
The SSN provided is the same as that submitted by other persons opening
an account or other customers.
f.
The address or telephone number provided is the same as or similar
to the account number or telephone number submitted by an unusually
large number of other persons opening accounts or other customers.
g.
The person opening the covered account or the customer fails to provide
all required personal identifying information on an application or
in response to notification that the application is incomplete.
h.
Personal identifying information provided is not consistent with
personal identifying information that is on file with the financial
institution or creditor.
i.
For financial institutions and creditors that use challenge questions,
the person opening the covered account or the customer cannot provide
authenticating information beyond that which generally would be available
from a wallet or consumer report.
4.
Unusual use of, or suspicious activity related to the covered
account.
a.
Shortly following the notice of a change of address for a covered
account, the institution or creditor receives a request for the addition
of authorized users on the account.
b.
A new revolving credit account is used in a manner commonly associated
with known patterns of fraud patterns. For example:
(1)
The customer fails to make the first (1st) payment or makes
an initial payment but no subsequent payments.
c.
A covered account is used in a manner that is not consistent with
established patterns of activity on the account. There is, for example:
(1)
Non-payment when there is no history of late or missed payments.
d.
Mail sent to the customer is returned repeatedly as undeliverable
although transactions continue to be conducted in connection with
the customer's covered account.
e.
The financial institution or creditor is notified that the customer
is not receiving paper account statements.
f.
The financial institution or creditor is notified of unauthorized
charges or transactions in connection with a customer's covered account.
5.
Notice from customers, victims of identity theft, law enforcement
authorities or other persons regarding possible identity theft in
connection with covered accounts held by the financial institution
or creditor.
a.
The financial institution or creditor is notified by a customer,
a victim of identity theft, a law enforcement authority, or any other
person that is has opened a fraudulent account for a person engaged
in identity theft.
[Ord. No. 081027B §1, 10-27-2008; Ord. No. 160222C §1, 3-14-2016]
A.
New Accounts. In order to detect any of the red
flags identified above associated with the opening of a new account,
utility personnel will take the following steps to obtain and verify
the identity of the person opening the account:
1.
Require certain identifying information such as name, date of
birth, residential or business address, principal place of business
for an entity, driver's license or other identification; verify
the customer's identity (for instance, review a driver's
license or other identification card);
2.
Request customer's Social Security Number for use in verifying
consumer credit information and/or obtaining consumer report in effort
to detect red flags, with fee of one hundred dollars ($100.00) for
good credit or two hundred dollars ($200.00) for questionable credit
to customer;
3.
In the event customer does not submit Social Security Number,
a two hundred dollar ($200.00) deposit will be required along with
two (2) forms of identifying information plus one (1) picture ID to
verify customer information (for instance, birth certificate, voter
registration card, passport and/or driver's license);
4.
Review documentation showing the existence of a business entity;
and
5.
Independently contact the customer.
B.
Existing Accounts. In order to detect any of the
red flags identified above for an existing account, utility personnel
will take the following steps to monitor transactions with an account:
[Ord. No. 081027B §1, 10-27-2008]
A.
In
the event utility personnel detect any identified red flags, such
personnel shall take one (1) or more of the following steps, depending
on the degree of risk posed by the red flag.
1.
Prevent and mitigate.
a.
Continue to monitor an account for evidence of identity theft;
b.
Contact the customer;
c.
Change any passwords or other security devices that permit access
to accounts;
d.
Not open a new account;
e.
Close an existing account;
f.
Reopen an account with a new number;
g.
Notify the program administrator for determination of the appropriate
step(s) to take;
h.
Notify law enforcement; and
i.
Determine that no response is warranted under the particular circumstances.
2.
Protect customer identifying information. In order
to further prevent the likelihood of identity theft occurring with
respect to utility accounts, the utility will take the following steps
with respect to its internal operating procedures to protect customer
identifying information:
a.
Ensure that its website is secure or provide clear notice that the
website is not secure;
b.
Ensure complete and secure destruction of paper documents and computer
files containing customer information;
c.
Ensure that office computers are password protected and that computer
screens lock after a set period of time;
d.
Keep offices clear of papers containing customer information;
e.
Ensure computer virus protection is up to date; and
f.
Require and keep only the kinds of customer information that are
necessary for utility purposes.
[Ord. No. 081027B §1, 10-27-2008]
This program will be periodically reviewed and updated to reflect
changes in risks to customers and the soundness of the utility from
identity theft. At least every year, the Program Administrator will
consider the utility's experiences with identity theft situations,
changes in identity theft methods, changes in identity theft detection
and prevention methods, changes in types of accounts the utility maintains
and changes in the utility's business arrangements with other entities.
After considering these factors, the Program Administrator determine
whether changes to the program, including the listing of red flags,
are warranted. If warranted, the Program Administrator will update
the program or present the Board of Aldermen with his/her recommended
changes and the Board of Aldermen will make a determination of whether
to accept, modify or reject those changes to the program.
[Ord. No. 081027B §1, 10-27-2008]
A.
Oversight. The Program Administrator will be responsible
for the program administration, for ensuring appropriate training
of utility staff on the program, for reviewing any staff reports regarding
the detection of red flags and the steps for preventing and mitigating
identity theft, determining which steps of prevention and mitigation
should be taken in particular circumstances and considering periodic
changes to the program.
B.
Staff Training And Reports. Utility staff responsible for
implementing the program shall be trained either by or under the direction
of the Program Administrator in the detection of red flags, and the
responsive steps to be taken when a red flag is detected.
C.
Service Provider Arrangements. In the event the utility
engages a service provider to perform an activity in connection with
one (1) or more accounts, the utility will take the following steps
to ensure the service provider performs its activity in accordance
with reasonable policies and procedures designed to detect, prevent
and mitigate the risk of identify theft.
D.
Specific Program Elements And Confidentiality. For the effectiveness
of identity theft prevention programs, the red flag rule envisions
a degree of confidentiality regarding the utility's specific practices
relating to identity theft detection, prevention and mitigation. Therefore,
under this program, knowledge of such specific practices are to be
limited to those employees who need to know them for purposes of preventing
identity theft. Because this program is to be adopted by a public
body and thus publicly available, it would be counterproductive to
list these specific practices here. Therefore, only the program's
general red flag detection, implementation and prevention practices
are listed in this document.
