[Ord. No. 015-2012 §1, 7-9-2012]
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, 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.
Red Flags Rule Definitions Used In This Program. 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.
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".
All the utility's accounts that are individual utility 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 person,
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 customer or to the safety and
soundness of the utility from identity theft.
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"Identing 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, computers
Internet Protocol address or routing code.
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[Ord. No. 015-2012 §1, 7-9-2012]
A.
The
City is a creditor due to its provision or maintenance of covered
accounts for which payment is made in arrears.
B.
Covered
account offered to customers for the provision of City services include
water and sewer services, court services and other services which
may be paid by credit card or debit card, or for which consumer information
is stored.
C.
The
processes of opening a new covered account, restoring an existing
covered account, making payments on such accounts, and have been identified
as potential processes in which identity theft could occur.
D.
The
City limits access to personal identifying information to those employees
responsible for or otherwise involved in opening or restoring covered
accounts or accepting payment for use of covered accounts. Information
provided to such employees is entered directly into the City's computer
system or manual record keeping system and is not otherwise recorded.
[Ord. No. 015-2012 §1, 7-9-2012]
A.
Access
to customer accounts shall be password protected and shall be limited
to authorized City personnel.
B.
Any
unauthorized access to or other breach of customer accounts is to
be reported immediately to the Mayor, City Administrator and City
Attorney and the password changed immediately. If any criminal activity
is suspected, the City Administrator and/or City Attorney shall notify
the Chief of Police who shall cause an investigation to ensue if deemed
warranted by the Chief of Police.
C.
Personal
identifying information included in customer accounts is considered
confidential and any request or demand for such information shall
be immediately forwarded to the Mayor or City Administrator and the
City Attorney.
[Ord. No. 015-2012 §1, 7-9-2012]
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.
Notification and warnings from credit reporting agencies.
Red Flags.
a.
Report of fraud accompanying a credit report;
b.
Notice or report from a credit agency of a credit freeze on a customer
or applicant;
c.
Notice or report from a credit agency of an active duty alert for
an applicant; and
d.
Indication from a credit report of activity that is inconsistent
with a customer's usual pattern or activity.
2.
Suspicious documents.
Red Flags.
a.
Identification document or card that appears to be forged, altered
or unauthentic;
b.
Identification document or card on which a person's photograph or
physical description is not consistent with the person presenting
the document;
c.
Other document with information that is not consistent with existing
customer information (such as if a person's signature on a check appears
forged); and
d.
Application for service that appears to have been altered or forged.
3.
Suspicious personal identifying information.
Red Flags.
a.
Identifying information presented that is inconsistent with other
information the customer provides (example: inconsistent birth dates);
b.
Identifying information presented that is inconsistent with other
sources of information (for instance, an address not matching an address
on a credit report);
c.
Identifying information presented that is the same as information
shown on other applications that were found to be fraudulent;
d.
Identifying information presented that is consistent with fraudulent
activity (such as an invalid phone number or fictitious billing address);
e.
Social Security number presented that is the same as one given by
another customer;
f.
An address or phone number presented that is the same as that of
another person;
g.
A person fails to provide complete personal identifying information
on an application when reminded to do so (however, by law Social Security
numbers must be required); and
h.
A person's identifying information is not consistent with the information
that is on file for the customer.
4.
Suspicious account activity or unusual use of account.
Red Flags.
a.
Change of address for an account followed by a request to change
the account holder's name;
b.
Payments stop on an otherwise consistently up-to-date account;
c.
Account used in a way that is not consistent with prior use (example:
very high activity);
d.
Mail sent to the account holder is repeatedly returned as undeliverable;
e.
Notice of the utility that a customer is not receiving mail sent
by the utility;
f.
Notice to the utility that an account has unauthorized activity;
g.
Breach in the utility's computer system security; and
h.
Unauthorized access to or use of customer account information.
[Ord. No. 015-2012 §1, 7-9-2012]
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:
Detect.
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;
2.
Verify the customer's identity (for instance, review the driver's
license or other identification card);
3.
Review documentation showing the existence of a business entity;
and
4.
Independently contact the customer.
B.
Existing Account. 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:
Detect.
[Ord. No. 015-2012 §1, 7-9-2012]
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; or
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 the computer
screens lock after a set period of time;
d.
Keep offices clear of papers containing customer information;
e.
Request only the last four (4) digits of Social Security numbers
(if any);
f.
Ensure computer virus protection is up to date; and
g.
Require and keep only the kinds of customer information that are
necessary for utility purposes.
[Ord. No. 015-2012 §1, 7-9-2012]
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 City Council with his or her recommended
changes and the City Council will make a determination of whether
to accept, modify or reject those changes to the program.
[Ord. No. 015-2012 §1, 7-9-2012]
A.
Oversight. The utility's program will be overseen by a Program
Administrator. The Program Administrator shall be the City Clerk.
The Program Administrator will be responsible for the program's 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, reviewing and, if necessary, approving 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. Such training
will be sufficient to effectively implement the program.
C.
Service Provider Arrangements. 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 identity theft. These steps
may include:
