[Ord. No. 634 §1, 10-20-2008]
The City of Rogersville Utility System ("Utility") 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 Transactions Act of 2003
16 C.F.R. Section 681.2. This Program was developed with oversight
and approval of the Board of Aldermen and enacted by ordinance on
October 20, 2008.
[Ord. No. 634 §1, 10-20-2008]
A. Fulfilling Requirements Of The Red Flag Rule. Under the
Red Flag 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 Flag Rule Definitions Used In This Program.
The Red Flag 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.
"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. 634 §1, 10-20-2008]
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 access its accounts, and its previous experiences with identity
theft. The Utility identifies the following red flags in each of the
listed categories:
1. Notifications 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 inauthentic;
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 a 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 not 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 to 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.
5. Alerts from others.
Red Flags:
a. Notice to the Utility from a customer, identity theft victim, law
enforcement or other person that it has opened or is maintaining a
fraudulent account for a person engaged in identity theft.
[Ord. No. 634 §1, 10-20-2008]
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 by requiring 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. 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:
Detect:
1. Verify the identification of customers if they request information
(in person, via telephone, via facsimile, via email);
2. Verify the validity of requests to change billing addresses; and
3. Verify changes in banking information given for billing and payment
purposes.
[Ord. No. 634 §1, 10-20-2008]
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:
Prevent and Mitigate:
2. Change any passwords or other security devices that permit access
to accounts;
4. Close an existing account;
5. Reopen an account with a new number;
6. Ask the City Administrator for determination of the appropriate step(s)
to take;
7. Notify law enforcement; or
8. Determine that no response is warranted under the particular circumstances.
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Protect Customer Identifying Information.
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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:
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1.
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Ensure that the City's website is secure or provide clear notice
that the website is not secure;
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2.
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Ensure complete and secure destruction of paper documents and
computer files containing customer information or maintain documents
in a secure location;
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3.
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Ensure that office computers are password protected and that
computer screens lock after a set period of time;
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4.
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Keep offices clear of papers containing customer information;
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5.
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Request only the last four (4) digits of social security numbers
(if any);
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6.
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Ensure computer virus protection is up to date; and
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7.
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Require and keep only the kinds of customer information that
are necessary for Utility purposes.
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[Ord. No. 634 §1, 10-20-2008]
This Program will be periodically reviewed and updated to reflect
changes in risks to customers and the soundness of the Utility from
identity theft. From time to time the Board of Aldermen will determine
whether changes to the Program, including the listing of red flags,
are warranted. If so, the Board of Aldermen will update the Program.
[Ord. No. 634 §1, 10-20-2008]
A. Oversight. Responsibility for developing, implementing and
updating this Program lies with the Board of Aldermen. They 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 Board of Aldermen 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 identity theft.
1. Require that service providers have such policies and procedures
in place; and
2. Require that service providers report any red flags to the City.
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 is to be
limited to the Board of Aldermen 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.