HomeMy WebLinkAbout04-09-09-2b - Resolution - 04/09/2009RESOLUTION NO. 04- 09 -09 -2 b
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS, APPROVING THE ADOPTION AND IMPLEMENTATION OF
COLLEGE STATION UTILITIES' IDENTITY THEFT PREVENTION PROGRAM
WHEREAS, the City Council of the City of College Station, Texas, recognizes the
requirement of an Identity Theft Prevention Program pursuant to the Federal Trade
Commission's Red Flags Rule, which implements Section 114 of the Fair and Accurate Credit
Transactions Act of 2003, 16 C. F.R. §681.2; and
WHEREAS, the City Council of the City of College Station, Texas, acknowledges the
Identity Theft Prevention Program was created and designed to detect, protect and mitigate
identity theft relating to covered accounts of College Station Utilities; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS:
PART 1: That the City Council hereby approves and adopts the implementation of the
College Station Utilities' Identity Theft Prevention Program and said program
is attached hereto as Exhibit "A ".
PART 2: That this resolution shall take effect immediately from and after its passage.
ADOPTED this 9th day of April , A.D. 2009.
ATTEST: APPROVED:
City Secretary MAYOR
APPFNVE D:
City Attorney
Resolution No. 04- 09 -09 -2b
COLLEGE STATION UTILITIES
IDENTITY THEFT PREVENTION PROGRAM
EFFECTIVE MAY 1, 2009
I.' ADOPTION OF PROGRAM AND GENERAL INFORMATION
a. The College Station Utilities ( "Utility ") developed this Identity Theft Prevention
Program ( "Program ") pursuant to the Federal Trade Commission's Red Flags Rule ( "Rule "),
which implements Section 114 of the Fair and Accurate Credit Transactions Act of 2003 16 C.
F.R. §681.2. This Program was developed with oversight from College Station Utilities with
approval by the College Station City Council. After consideration of the size and complexity of
the Utility's operations and account systems, and the nature and scope of the Utility's activities,
College Station Utilities and the College Station City Council determined that this Program was
appropriate for College Station Utilities, and therefore approved this Program on April 9, 2009.
b. An Identity Theft Prevention Program was created and designed to detect,
prevent, and mitigate identity theft relating to covered accounts of the Utility. The objective of
College Station Utilities is to safeguard the "identifying information" of the Utility customers for
the purpose of identifying and preventing identity theft.
II. PROGRAM PURPOSE AND DEFINITIONS
a. Fulfilling Requirements of the Red Flags 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. This requirement ensures the City
of College Station has a program in place to detect, prevent, and diminish identity theft in
connection with the opening and maintaining of utility accounts, and establishes written
procedures for security and storing of personal information. 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
(1) Identity Theft — Fraud committed using the identifying information of
another person.
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(2) Red Flag — Pattern, practice, or specific activity that indicates the possible
existence of Identity Theft.
(3) Creditors — 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. According to the Rule, a
municipal utility is a creditor subject to the Rule requirements.
(4) Covered Account — Any account the Utility offers or maintains primarily
for personal, family or household purposes, that involves multiple
payments or transactions; and any other account the Utility offers or
maintains for which there is a reasonably foreseeable risk to customers or
to the safety and soundness of the Utility from Identity Theft. All the
Utility's accounts that are individual utility service accounts held by
customers of the utility, whether residential, commercial or industrial, are
covered by the Rule.
(5) Identifying information — 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.
C. This policy applies to all City of College Station Employees and service providers
that have access the to the Utility's customer's personal information that is submitted in person,
by email, by fax, through regular mail, or over the internet.
III. IDENTIFICATION OF RED FLAGS
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:
b. Red Flags for Notifications and Warnings from Credit Reporting Agencies
(1) Report of fraud accompanying a credit report;
(2) Notice or report from a credit agency of a credit freeze on a customer or
applicant;
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(3) Notice or report from a credit agency of an active duty alert for an
applicant; and
(4) Indication from a credit report of activity that is inconsistent with a
customer's usual pattern or activity.
C. Red Flags for 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;
(3) 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
(4) Application for service that appears to have been altered or forged.
d. Red Flags for Suspicious Personal Identifying Information
(1) Identifying information presented that is inconsistent with other
information the customer provides (example: inconsistent birth dates);
(2) Identifying information presented that is inconsistent with other sources of
information (for instance, an address not matching an address on a credit
report);
(3) Identifying information presented that is the same as information shown
on other applications that were found to be fraudulent;
(4) Identifying information presented that is consistent with fraudulent
activity (such as an invalid phone number or fictitious billing address);
(5) Social security number presented that is the same as one given by another
customer;
(6) An address or phone number presented that is the same as that of another
person;
(7) 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
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(8) A person's identifying information is not consistent with the information
that is on file for the customer.
e. Red Flags for Suspicious Account Activity or Unusual Use of Account
(1) Change of address for an account 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 holder is repeatedly returned as undeliverable;
(5) Notice to the Utility that a customer is not receiving mail sent by the
Utility;
(6) Notice to the Utility that an account has unauthorized activity;
(7) Breach in the Utility's computer system security; and
(8) Unauthorized access to or use of customer account information.
E Red Flag Alerts from Others. 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.
IV. DETECTING RED FLAGS
a. Detection of 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:
(1) Require certain identifying information such as name, residential or
business address, driver's license or other identification;
(2) Request additional documentation to establish identity if necessary;
(3) Independently contact the customer.
C. Detection of 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:
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(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.
V. PREVENTING AND MITIGATING IDENTITY THEFT
a. Prevention and Mitigation. In the event Utility personnel detect any identified
Red Flags, such personnel shall take one or more of the following steps, depending on the degree
of risk posed by the Red Flag:
(1) Continue to monitor an account for evidence of Identity Theft;
(2) Contact the customer;
(3) Change any passwords or other security devices that permit access to
accounts;
(4) Not open a new account;
(5) Close an existing account;
(6) Reopen an account with a new number;
(7) Notify the Utility Customer Service Manager 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.
b. 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:
(1) Ensure that its website is secure or provide clear notice that the website is
not secure;
(2) Ensure complete and secure destruction of paper documents and computer
files containing customer information according to Federal and State law;
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(3) Ensure that office computers are password protected and that computer
screens lock after a set period of time;
(4) Keep offices clear of papers containing customer information
(5) Ensure computer virus protection is up to date; and
(6) Require and keep only the kinds of customer information that are
necessary for utility purposes.
C. Notice of Identity Theft. Once a customer identifies themselves to the Utility as
a victim of identity theft and notifies the Utility of the theft the Utility shall request from the
customer the following:
(1) Request the Utility customer provide a picture identification that meets the
requirements for a opening a new account;
(2) The Utility will provide the Utility customer with a Notice of Identity
Theft Affidavit;
(3) The Utility customer will be required to submit a copy of both a police
report and the Notice of Identity Theft Affidavit;
(4) The Utility will document the receipt of the documents;
(5) When the documents are received the Utility will take action that could
include the following:
a. Monitor the account
b. Contact the customer
c. Refuse to open the account
d. Notify law enforcement
e. Determine that no response is warranted under the particular
circumstances
VI. PROGRAM UPDATES
The Utility Customer Service Manager will periodically review and update this Program
to reflect changes in risks to customers and the soundness of the Utility from Identity Theft. In
doing so, the Utility Customer Service Manager will consider the Utility's experiences with
Identity Theft situations, changes in Identity Theft methods, changes in Identity Theft detection
and prevention methods, and changes in the Utility's business arrangements with other entities.
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After considering these factors, the Utility Customer Service Manager will determine whether
changes to the Program, including the listing of Red Flags, are warranted. If warranted, the
Utility Customer Service Manager 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.
VII. PROGRAM ADMINISTRATION.
a. Oversight. Responsibility for developing, implementing and updating this
Program lies with the Utility Customer Service Manager. The Utility Customer Service Manager
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 Utility Customer Service
Manager 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 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, by contract, that service providers have such policies and
procedures in place; and
(2) Require, by contract, that service providers review the Utility's Program
and report any Red Flags to the Utility Customer Service Manager.
Identity Theft Prevention Program
Resolution No. 04- 09 -09 -2b
CITY OF COLLEGE STATION:
Mayor
Date:
ATTEST:
City Secretary
Date:
APPROVED:
City Manager
Date:
& ��, �4
City Attorney
Date:
Chief Financial Officer
Date:
Identity Theft Prevention Program