[Added 5-18-2009]
The Village of Carthage ("utility") developed this identity
theft prevention program ("program") pursuant to the Federal Trade
Commission's Red Flags Rule ("Rule"), which implements Section 114
of the Fair and Accurate Credit Transactions Act of 2003, 16 C.F.R.
§ 681.2. This program was developed with oversight and approval
of the Village of Carthage Board of Trustees. 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
Board of Trustees determined that this program was appropriate for
the Village of Carthage and therefore approved this program on May
18, 2009.
A.
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 and complexity
and the nature of its operation. Each program must contain reasonable
policies and procedures to:
(1)
Identify relevant red flags for new and existing covered accounts
and incorporate those red flags into the program;
(2)
Detect red flags that have been incorporated into the program;
(3)
Respond appropriately to any red flags that are detected to
prevent and mitigate identity theft; and
(4)
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.
B.
COVERED ACCOUNT
(1)
(2)
CREDITORS
IDENTITY THEFT
IDENTIFYING INFORMATION
RED FLAG
Red Flags Rule definitions used in this program. As used in this
program, the following terms shall have the meanings indicated:
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:
Any account the utility offers or maintains, primarily for personal,
family or household purposes, that involves multiple payments or transactions;
and
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.
Includes finance companies, automobile dealers, mortgage
brokers, utility companies, and telecommunications companies. Where
nonprofit and government entities defer payment for goods or services,
they, too, are to be considered creditors. According to the Rule,
a municipal utility is a creditor subject to the Rule requirements.
Fraud committed using the identifying information of another
person.
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.
A pattern, practice, or specific activity that indicates
the possible existence of identity theft.
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:
A.
Suspicious documents red flags:
(1)
Identification document or card that appears to be forged, altered
or inauthentic.
(2)
Identification document or card on which a person's photograph
or physical description is not consistent with the person presenting
the document.
(3)
Other document with information that is not consistent with
existing customer information (such as if a person's signature on
a check appears forged).
(4)
Application for service that appears to have been altered or
forged.
B.
Suspicious personal identifying information red flags:
(1)
Identifying information presented that is inconsistent with
other information the customer provides (example: inconsistent birth
dates).
(2)
Identifying information presented that is inconsistent with
other sources.
(3)
Identifying information presented that is the same as information
shown on other applications that were found to be fraudulent.
(4)
Identifying information presented that is consistent with fraudulent
activity (such as an invalid phone number or fictitious billing address).
(5)
An address or phone number presented that is the same as that
of another person.
(6)
A person fails to provide complete personal identifying information
on an application when reminded to do so. (However, by law, social
security numbers must not be required.)
(7)
A person's identifying information is not consistent with the
information that is on file for the customer.
C.
Suspicious account activity or unusual use of account red flags:
(1)
Change of address for an account followed by a request to change
the account holder's name.
(2)
Payments stop on an otherwise consistently up-to-date account.
(3)
Account used in a way that is not consistent with prior use
(example: very high activity).
(4)
Mail sent to the account holder is repeatedly returned as undeliverable.
(5)
Notice to the utility that a customer is not receiving mail
sent by the utility.
(6)
Notice to the utility that an account has unauthorized activity.
(7)
Breach in the utility's computer system security.
(8)
Unauthorized access to or use of customer account information.
A.
New and existing accounts.
(1)
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:
(a)
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;
(b)
Verify the customer's identity (for instance, review a driver's
license or other identification card);
(c)
Review documentation showing the existence of a business entity;
and
(d)
Independently contact the customer.
(2)
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:
B.
Public information. Water and/or sewer usage, bill amounts, history
of leakage, etc., are considered by New York State to be public information.
Delinquent water/sewer bills are a lien on real property, and, as
such, information of such nature pertaining to a particular account
number or tax parcel number is available to the general public for
its use.
In the event utility personnel detect any identified red flags,
such personnel shall take one or more of the following steps, depending
on the degree of risk posed by the red flag:
A.
Prevent and mitigate.
(1)
Continue to monitor an account for evidence of identity theft.
(2)
Contact the customer.
(3)
Change any passwords or other security devices that permit access
to accounts.
(4)
Not open a new account.
(5)
Close an existing account.
(6)
Reopen an account with a new number.
(7)
Notify the program administrator for determination of the appropriate
step(s) to take.
(8)
Notify law enforcement.
(9)
Determine that no response is warranted under the particular
circumstances.
B.
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:
(1)
Ensure that its website is secure or provide clear notice that
the website is not secure.
(2)
Ensure complete and secure destruction of paper documents and
computer files containing customer information.
(3)
Ensure that office computers are password-protected and that
computer screens lock after a set period of time.
(4)
Keep offices clear of papers containing customer information.
(5)
Ensure computer virus protection is up-to-date.
(6)
Require and keep only the kinds of customer information that
are necessary for utility purposes.
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 situation,
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 will 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 Trustees with his or her recommended
changes, and the Board of Trustees will make a determination of whether
to accept, modify or reject those changes to the program.
A.
Oversight. Responsibility for developing, implementing and updating
this program lies with an Identity Theft Committee for the utility.
The Committee is headed by a program administrator who may be the
head of the utility or his or her appointee. Two or more other individuals
appointed by the head of the utility or the program administrator
comprise the remainder of the Committee membership. 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 in the responsive
steps to be taken when a red flag is detected. (The utility may include
in its program how often training is to occur. The program may also
require staff to provide reports to the program administrator on incidents
of identity theft, the utility's compliance with the program and the
effectiveness of the program.)
C.
Service provider arrangements. In the event the utility engages a
service provider to perform an activity in connection with one or
more accounts, the utility will take the following steps to ensure
that the service provider performs its activity in accordance with
reasonable policies and procedures designed to detect, prevent, and
mitigate the risk of identity theft.
D.
Specific program elements and confidentiality. For the effectiveness
of identity theft prevention programs, the Reds Flags 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 the Identity Theft Committee and 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.