(a)
A ruling known as the “identity theft red flags regulation” was jointly issued by the Federal Trade Commission, Office of Thrift Supervision and several other governing agencies (agencies), implemented section 114 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) and is effective November 1, 2008.
(b)
The identity theft red flags regulation requires financial institutions to develop and implement a written identity theft program to detect, prevent and diminish identity theft in connection with opening of certain accounts or existing accounts.
(c)
Under the regulation only those financial institutions that offer or maintain covered accounts must develop and implement a written program. The term “covered account” means:
(1)
An account primarily used for personal, family, or household purposes, that involves or is designed to permit multiple payments or transactions;
(2)
Any other account for which there is a reasonably foreseeable risk to customers or the safety and soundness of the financial institution or creditor from identity theft.
(d)
The agencies believe that accounts such as credit cards, mortgage loans, and cell phone, utility, checking, automobile loans and savings accounts are examples of accounts designed to permit multiple payments or transactions and also contain a reasonably foreseeable risk of identity theft.
(1998 Code, sec. 2-15; Ordinance 2008121, sec. 2 (exh. A, sec. I), adopted 10/21/08; 2013 Code, sec. 60-50)