HomeMy WebLinkAbout2010-24 Identity Theft-Red Flag Repealing RESO 2008-36
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RESOLUTION NO..J..DID- ;;.L.j
A RESOLUTION UPDATING THE IDENTITY THEFT (RED FLAG)
PREVENTION PROGRAM REPEALING RESOLUTION 2008-36
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1.
That the City Council recognizes the importance of protecting its customers from attempts to
steal important personal information and to have an internal program that actively looks for such
activity.
SECTION 2.
That the City of Ashland maintains customer accounts for utility billing and other purposes that
meet the definition of "account systems" per Section 114 of the Fair and Accurate Credit
Transactions Act of 2003. .
SECTION 3.
That by adopting the attached Rrogram the City of Ashland is compliant with Federal and State
guidelines to ensure confidentiality of the personal information held by the City for customers
who maintain accounts for doing business with the City.
SECTION 4.
This. eso ution was duly PASSED and ADOPTED this ~ , day of
, 2010, and takes effect upon signing by the Mayor:
Barbara Christensen, City Recorder
SIGNED and APPROVED this ~ day of ~
,2010.
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City of Ashland
Identity Theft Prevention Program
Effective beginning November I, 2008
Revised July, 2010
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Pro2ram Adoption
The City of Ashland developed this Identity Theft Prevention Program pursuant to the
Federal Trade Commission's Red Flags Rule, which implements Section 114 ofthe Fair
and Accurate Credit Transactions Actof2003. 16 C.F:R. 681.2. This program was
developed with oversight and approval of the City Council. After consideration of the
size and complexity of the city's operations and account systems, and the nature and
scope of the city's activities, the City Council determined that this program was
appropriate for the City of Ashland, and therefore approved this program on October 21,
2008.
Purpose
Creation and implementation of this Identity Theft Prevention Program for the City of
Ashland helps to identify, detect, mitigate, and update Red Flags that signal the
possibility of identity theft in connection with the opening of an account record or an
existing account record.
Red Flags Rule definitions used in this Program
According to the Rule, a municipality operating a 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 account records (including assessments and other receivables) that are individual
service accounts held by customers of the City whether residential, commercial or
industrial are covered by the Rule. .
Definitions used in this Pro2ram
Account Record(s)- City held customer records subject to this program.
Covered Account(s)- An account that the City offers or maintains, primarily for
personal, family or household purposes, that involves or is designed to permit multiple
payments or transactions by a customer.
Identifying Information- "any name or number that may be used, alone or in
conjunction with any other information, to identify a specific person," induding: naine,
telephone number, social security number, alien registration number, government
passport number, employer or taxpayer identification number, unique electronic
identification number, computer's Internet Protocol address, or routing code.
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Identity Theft-"fraud committed or attempted using the identifying information of
another person without authority."
R~d F1ag- "a pattern, practice, or specific activity that indicates the possible existence of
Identity Theft".
Other Account(s)-Any other account the City of Ashland offers or maintains for which
there is a reasonably foreseeable risk to customers or the safety and soundness of the City.
of Ashland from identity theft, including financial, operational, compliance, reputation,
or litigation risks.
Identification of Red F1al!s
In order to identify relevant Red Flags, the city considers the types of covered 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
City identifies the following red flags, in each of the listed categories:
. Suspicious Documents
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.
Suspicious Personal Identifying Information
1. Identifying information presented that is inconsistent with other information
the customer provides (example: inconsistent birth dates);
2. Social Security number presented that is the same as one given by another
customer;
3. 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
4. A person's identifying information is not consistent with the information that
is on file for the customer. .
Suspicious Account Activity or Unusual Use of Account
I. Change of address for an account record 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 record holder is repeatedly returned as undeliverable;
5. Notice to the City that a customer is not receiving mail sent by the Utility;
6. Notice to the City that an account has unauthorized activity;
7. Breach in the City's computer system security; and
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8. Unauthorized access to or use of customer account information. (personal or
sensitive info)
9. Notice to the City from the customer, identify theft victim, law enforcement or
other person that it has opened or is maintaining a fraudulent account record
for a person engaged in Identity left.
Detectinl! Red Flal!s
New Accounts
In order to detect any of the Red Flags identified above associated with the opening of a
new account record, city personnel will take the following steps to obtain and verify the
identity of the person opening the account:
I. 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 a driver's license or other
identification card);
3. Identification number, which shall be
a. For a U.S. person, taxpayer identification number (social security
number), or (any state or Federal issued photo ill)
b. For a non U.S. person, one or more of the following: a taxpayer
identification number (social security number), passport number and
country of issuance; alien identification card number; or number and
country of issuance of any other government-issued document
evidencing nationality or residence and bearing a photograph or
similar safeguard. .
4. Review documentation showing the existence of a business entity.
Existing Accounts
In order to detect any of the Red Flags identified above for an existing account record,
City personnel will take the following steps to monitor transactions with an account
record:
I. 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.
Preventinl! and Mitil!ation Identity Theft
In the event City personnel detect any identified Red Flags, such personnel shall take on
or more of the following steps, depending on the degree of the risk posed by the Red
Flag:
1. Continue to monitor an account for evidence ofldentity Theft;
2. Contact the customer;
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3. Change any passwords or other security devices that permit access to the
accounts;
4. Not open a new account record;
5. Close an existing account record;
6. Reopel1 an account record with a new number;
7. Notify the Program Administrator for determination of the appropriate step(s)
. to take:
8. Notify law enforcement; or
9. Determine that no response is warranted under the particular circumstances.
10. Proposing log maintained in each department or central collection location.
Protect customer identifvinl! information
In order to further prevent the 'likelihood of Identity Theft occurring with respect to
Covered Accounts, the [Utility] City or Department will talce 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. E~sure complete and secure destruction of paper documents and computer
files containing customer information;
3. Keep offices clear of papers containing customer information;
4. Ensure computer virus protection is up to date;
5. Information Technology Department (IT) is responsible to establish technical
controls to safeguard personal information stored in electronic format and to
document safeguard practices in writing;
6. Require and keep only the kinds of customer information that are necessary
for (utility) City or Department purposes;
7. Add the redacting information; and
8. Ensure giving things out over the phone is minimal and all other information
will be redacted.
Prol!ram Updates
The Program Administrator will periodically review and update this Program to reflect
changes in risks to customers and the soundness of the City from Identity Theft. In doing
.so, the Program Administrator will consider the City's experiences with Identity Theft
situations, changes in Identity Theft methods, changes in Identity Theft detection and
prevention methods, and changes in the City'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.
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Prol!ram Administration
A. Oversight
Responsibility for developing, implementing and updating this Program lies with an
Identity Theft Committee for the City. The Committee is headed by a Program .
Administrator who is appointed by the City Administrator. Two or. more other
individuals appointed by the City Administrator 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 City staff
on the Program, for reviewing any staffreports 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
City 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.
C. Non-disclosure of Specific Practices .
For the effectiveness of this Identity Theft Prevention Program, knowledge about specific
Red Flag identification, detection, mitigation and prevention practices must be limited to
the Identity Theft Committee who developed this Program and to those employees with a
need to implement this program that list or describe such specific practices and the
information those documents contain are considered "security information" and are
unavailable to the public because disclosure of them would be likely to substantially
jeopardize the security of information against improper use, that use being to circumvent
the City's Identity Theft Prevention efforts in order to facilitate the commission of
Identity Theft.
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