Creditor.
An entity or person to whom a debt is owed.
Covered account.
An account where an entity provides a service or goods before the consumer pays for it.
Red flags.
Warning signs such as a pattern, practice, or specific activity that indicates the possible existence of identity theft.
Identity theft.
Fraud committed using the identifying information of another person.
Utility.
The City of Schulenburg.
(Ordinance adopted 10/20/08; 1989 Code, sec. 11-65)
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) 
Suspicious documents.
(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.
(2) 
Suspicious personal identifying information.
(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 not be required); and
(H) 
A person’s identifying information is not consistent with the information that is on file for the customer.
(3) 
Suspicious account activity or unusual use of account.
(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.
(4) 
Alerts from others.
Notice to the utility from a customer, identity theft victim, law enforcement or other person, service provider or franchisee that it has opened or is maintaining a fraudulent account for a person engaged in identity theft.
(Ordinance adopted 10/20/08; 1989 Code, sec. 11-66)
Utility personnel will take the following steps to obtain, verify and protect the identity of a person or business opening receivable, payable and human resource accounts and continue to monitor transactions on accounts through various department procedures:
(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, telephone or cell number;
(2) 
Verify the customer’s identity (for instance, review a driver’s license or other identification card);
(3) 
Review documentation showing the existence of a business entity;
(4) 
Independently contact the customer;
(5) 
Verify the identification of customers if they request information (in person, via telephone, via facsimile, via e-mail);
(6) 
Verify the validity of requests to change billing addresses; and
(7) 
Verify changes in banking information given for billing and payment purposes.
(Ordinance adopted 10/20/08; 1989 Code, sec. 11-67)
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) 
Contact field personnel to participate in investigation, picture taking and documentation;
(I) 
Notify law enforcement; or
(J) 
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) 
Request only the last four 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.
(Ordinance adopted 10/20/08; 1989 Code, sec. 11-68)
This program will be periodically reviewed and updated to reflect changes in risks to customers and the soundness of the utility from identity theft. The program administrator will, on an annual basis, 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 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.
(Ordinance adopted 10/20/08; 1989 Code, sec. 11-69)
(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 (2) 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, and 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. Training of staff and the program administrator will occur on an as-needed basis. All incidents of identity theft, the utility’s compliance with the program and its effectiveness will be documented and kept on file with the program administrator.
(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, including but not limited to franchise providers, 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;
(2) 
Require that service providers provide the utility with a copy of their policy and contact persons; and
(3) 
The utility will provide the service providers with a copy of the utility’s program and contact persons.
(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 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.
(Ordinance adopted 10/20/08; 1989 Code, sec. 11-70)