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HomeMy Public PortalAboutResolution 1585VILLAGE OF PLAINFIELD RESOLUTION NO. 1585 A RESOLUTION ADOPTING AN IDENTITY THEFT PREVENTION PROGRAM FOR THE VILLAGE OF PLAINFIELD, ILLINOIS WHEREAS, The Fair and Accurate Credit Transactions Act of 2003, an amendment to the Fair Credit Reporting Act, required rules regarding identity theft protection to be promulgated; and WHEREAS, Those rules become effective May 1, 2009, and require municipal utilities and other departments to implement an identity theft program and policy; and WHEREAS, The Village desires to implement a written identity theft prevention program in compliance with the rules and to protect the Village's customers from identity theft; and WHEREAS, The Village of Plainfield that the following policy is in the best interest of the municipality, its residents and customers. NOW, THEREFORE, BE IT RESOLVED by the Village Board of Trustees of the Village of Plainfield, Illinois, that the Identity Theft Prevention Program is hereby adopted. ADOPTED this 20th day of April, 2009 by a roll call vote as follows: AYES: Vaupel, Dement, Fay, Lamb, Manning, Racich NAYS: None ABSENT: None ..~~" Village Clerk Atte _- . . V ~~ _. .-..... -c• Village Clerk _ .~ - ~ ~ 4 v _ r .' (Seal) ~ v ~'~.~-- -__~ `•~ Approved: Apri120, 2009 VILLAGE OF PLAINFIELD IDENTITY THEFT PREVENTION PROGRAM This Identity Theft Prevention Program is hereby adopted by the Village of Plainfield pursuant to and in compliance with the identity Theft Rules of the Federal Trade Commission (FTC), Part 681 of Title 16 of the Code of Federal Regulations (16 CFR Part 681). Purpose The Village of Plainfield developed this Identity Theft Prevention Program ("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. The purpose of this Program is to protect customers of the Village of Plainfield's utility services from identity theft. The Program is intended to establish reasonable policies and procedures to facilitate the detection, prevention and mitigation of identity theft in connection with the opening of new Covered Accounts and activity on existing Covered Accounts. The Program is intended to assist Village Staff in identifying a potential identity theft situation, and does not ensure prevention of all instances of identity theft. Scope This Program applies to the creation, modification anal access to Identifying Information of a customer of one or more of the utilities operated by the Village of Plainfield (water, waste water, and refuse) by any and all personnel of the Village, including management personnel. According to the Rule, the Village is a creditor potentially subject to the Rule requirements if it defers payment far goods and/or services rendered by the Village. This Program does not replace or repeal any previously existing policies or programs addressing same or all of the activities that are the subject of this Program, but rather it is intended to supplement any such existing policies and programs. Definitions When used in this Program, the following terms have the meanings set forth opposite their name, unless the context clearly requires that the term be given a different meaning: ldenti Theft: The term "identity theft" means a fraud committed or attempted using the identifying information of another person without authority. (16 CFR §681.2(b)(8) and 16 CFR §603.2(a)). _Red Flay: The term "red flag" means a pattern, practice, or specific activity that indicates the possible existence of Identity Theft (16 CFR 681.2(b)(9). Covered Account:. The term "covered account" means an account the Village offers or maintains, primarily far personal, family or household purposes, that involves multiple payments or transactions. (16 CFR 681.2(b)(3)(i)). A utility account is a "covered account." The term "covered account" also includes other accounts offered or maintained by the Village for which 4/ 14/2009 1 there is a reasonably foreseeable risk to the Village or its customers from identity theft. (16 CFR 681.2(b)(3)(ii)). Identi in Information: The term "identifying information" means any name or number that may be used, alone or in conjunction with any other information, to identify a specific person., including any name, social security number, date of birth, official State or government issued driver's license or identification number, alien registration number, government passport number, employer or taxpayer identification number. Additional examples of "identifying information" are set forth in 16 CFR §603.2(a). Certain terms used but not otherwise defined herein shall have the meanings given to them in the FTC's Identity Theft Rules (16 CFR Part 681) or the Fair Credit Reporting Act of 1970 (l5 U.S.C. § 1681 et seq.), as amended by the Fair and Accurate Credit Transactions Act of 2003 into law on December 4, 2003. (Public Law 108-159). Administration of the Program The initial adoption and approval of the Identity Theft Prevention Program shall be by Resolution of the Village Board. Thereafter, changes to the Program of a day-to-day operational character and decisions relating to the interpretation and implementation of the Program may be made by the Director of Management Services (Program Administratorj. Major changes or shifts of policy positions under the Program shall only be made by the Village Board. Development, implementation, administration and oversight of the Program will be the responsibility of the Program Administrator. Other Program personnel may be designated by the Program Administrator as needed. The Program Administrator will report at least annually to the Village Administrator regarding compliance with this Program. Issues to be addressed in the annual Identity Theft Prevention Report include: 1. The effectiveness of the policies and procedures in addressing the risk of Identity Theft in connection with the opening of new Covered Accounts and activity with respect to existing Covered Accounts. 2. Service provider arrangements. 3. Significant incidents involving Identity Theft and management's response. 4. Recommendations for material changes to the Program, if needed for improvement. Identity Theft Prevention Elements Identification of Relevant Red Flags The Village of Plainfield has considered the guidelines and the illustrative examples of possible Red Flags from the FTC's Identity Theft Rules. The Village has also reviewed the types of accounts offered and maintained, the methods it provides to open its accounts, the methods it provides to access its accounts, and its previous experiences with Identity Theft, if any. The Village hereby determines that the following are the relevant Red Flags for purposes of this Program given the relative size of the Village of Plainfield and the limited nature and scope of the services that the Village provides to its citizens: 4/ 14/2009 2 A. Alerts, notifications, or other warnings received fron~a consumer reporting agencies or service providers. 1. A Consumer Reporting Agency alerts the Village of credit freeze, address disparity, or that an account has been noted to have been abusive or fraudulent activity. B. The presentation of suspicious documents. 2. Documents provided for identification appear to have been altered or forged or inauthentic. 3. The photograph or physical description on the identif cation is not consistent with the appearance of the applicant ar customer presenting the identification. 4. Other information on the identification is not consistent with information provided by the person opening a new covered account or customer presenting the identification. 5. Other information on the identification is not consistent with readily accessible information that is an file with the Village, such as a signature card or a recent check.. 6. An application appears to have been altered or forged,. or gives the appearance of having been destroyed and reassembled. C. The presentation of suspicious personal identifying information, such as a suspicious address change. 7. Personal identifying information provided that is inconsistent with other sources of information. For example, an address not matching an address on a credit report. $. Personal identifying information provided by the customer is not cansistent with other personal identifying information provided by the customer. Far example, inconsistent birth dates. 9. Personal identifying information provided is the same as information shown on other applications that were known to be fraudulent. 10. Personal identifying information provided is consistent with fraudulent activity, such as an invalid phone number or fictitious billing address. 1 I .Identifying information presented that is the same as one given by another customer. 12. The person. opening the covered account or the customer fails to provide all required personal identifying information on an application or in response to notification that the application is incomplete. 13. Personal identifying information provided is not cansistent with personal identifying information that is on file with the Village. 14. Tf the Village of Plainf eld uses challenge questions, the person opening the covered account or the customer cannot provide authenticating information beyond that which generally would be available from a wallet or consumer report. D. The unusual use of, or other suspicious activity related to, a Covered Account. 15. Shortly following the notice of a change of address for a covered account, the Village receives a request for the addition of authorized users on the account. 16. A new utility account is used in a manner commonly associated with known patterns of fraud patterns. For example: the customer fails to make the first payment or makes an initial payment but no subsequent payments. 1.7. A covered account with a stable history shows irregularities. 4/ 14/2009 18. A covered account that has been inactive for a reasonably lengthy period of time is used (taking into consideration the type of account, the expected pattern of usage and other relevant factors). 19. Mail sent to the customer is returned repeatedly as undeliverable although usage of utility products or services continues in connection with the customer's covered account. 20. The Village is notified that the customer is not receiving paper account statements. 21. The Village is notified of unauthorized usage of utility products or services in connection with a customer's covered account. E. Notice of Possible Identity Theft. 22. The Village is notified by a customer, a victim of identity theft, a law enforcement authority, or any other person that it has opened a fraudulent account for a person engaged in identity theft. Detection of Red Flags The employees of the Village of Plainfield that interact directly with customers on a day-to-day basis shall have the initial responsibility for monitoring the information and documentation provided by the customer and any third-party service provider in connection with the opening of new accounts and the modification of or access to existing accounts and the detection of any Red Flags that might arise. Management shall see to it that all employees who might be called upon to assist a customer with the opening of a new account or with modifying or otherwise accessing an existing account are properly trained such that they have a working familiarity with the relevant ,Red Flags identified in this Program so as to be able to recognize any Red Flags that might surface in connection with the transaction. An Employee who is not sufficiently trained to recognize the Red Flags identified in this Program shall not open a new account for any customer, modify any existing account or otherwise provide any customer with access to information in an existing account without the direct supervision and specific approval of a management employee. Management employees shall be properly trained such that they can recognize the relevant Red Flags identified in this Program and exercise sound judgment in connection with the response to any unresolved Red Flags that may present themselves in connection with the opening of a new account or with modifying or accessing of an existing account. Management employees shall be responsible for making the f nal decision on any such unresolved Red Flags: The Program Administrator shall establish from time to time a written policy setting forth the manner in which a prospective new customer may apply fox service, the .information and documentation to be provided by the prospective customer in connection with an application for a new utility service account, the steps to be taken by the employee assisting the customer with the application in verifying the customer's identity and the manner in which the information and documentation provided by .the customer .and any third-party service provider shall be maintained. Such policy shall be generally consistent with the spirit of the Customer Identification Program. rules (31 CFR 103.121) implementing Section 326(x) of the USA PATRIOT Act but need not be as detailed. The Program Administrator shall establish from time to time a written policy setting forth the manner in which customers with existing accounts shall 4/14/2009 4 establish their identity before being allowed to make modifications to or otherwise gain access to existing accounts. Response to Detected Red Flags If the responsible employees of the Village of Plainfield as set forth in the previous section are unable, after making a good faith effort, to form a reasonable belief that they know the true identity of a customer attempting to open a new account or modify or otherwise access an existing account based on the information and documentation provided by the customer and any third-party service provider, the Village shall not open the new account or modify or otherwise provide access to the existing account as the case may be: Opening new accounts or the modification or access to existing accounts will be on anon-discriminatory basis based on the Village's policies. The Program Administrator shall establish from time to time a written policy setting forth the steps to be taken in the event of an unresolved Red Flag situation. Consideration should be given to aggravating factors that may heighten the risk of Identity Theft, such as a data security incident that results in uanautharized access to a customer's account, or a notice that a customer has provided account information to a fraudulent individual or website. Appropriate responses to prevent or mitigate Identity Theft when a Red Flag is detected. include: 1. Monitoring a Covered Account for evidence of Identity Theft. 2. Contacting the customer. 3. Changing any passwords, security codes, or other security devices that permit access to a Covered Account. 4. Reopening a Covered Account with a new account number. S. Not opening a new Covered Account. 6. Closing an existing Covered Account. 7. Notifying the Program Administrator for determination of the appropriate step(s) to take. 8. Notifying law enforcement. 9. Determining that no response is warranted under the particular circumstances. Program Management and Accountability Initial Risk Assessment -- Covered Accounts Utility accounts for personal, family and household purposes are specifically included within the definition of "covered account" in the FTC's Identity Theft Rules. "Therefore, the Village of Plainfield determines that with respect to its residential utility accounts it offers and/or maintains covered accounts. 1'he Village also performed an initial risk assessment to determine whether the utility offers or maintains any other accounts for which there are reasonably foreseeable risks to customers or the utility from identity theft. In making this determination the Village considered (1) the methods it uses to open its accounts, (2) the methods it uses to access its accounts, and (3) its previous experience with identity theft, if any, and it concluded that it does not offer or maintain any such, other covered accounts. 4/ 14/2009 5 Program Updates -Risk Assessment The Program, including relevant Red Flags, is to be updated as often as necessary but at least annually to reflect changes in risks to customers from Identity Theft. Factors to consider in the Program update include: 1. An assessment of the risk factors identified above. 2. Any identified Red Flag weaknesses in associated account systems or procedures. 3. Changes in methods of Identity Theft. 4. Changes in methods to detect, prevent, and mitigate Identity Theft. 5. Changes in business arrangements, including mergers, acquisitions, alliances, joint ventures, and service provider arrangements. Training and Oversight All staff and third-party service providers performing any activity in connection with one or more Covered Accounts are to be provided appropriate training and receive effective oversight to ensure that the activity is conducted in accordance with policies and procedures designed to detect, prevent, and mitigate the risk of Identity Theft. Other Legal Requirements Awareness of the following related legal requirements should be maintained: • 31 U.S.C. 5318 (g) -Reporting of Suspicious Activities • 1 S U.S.C. 1681 c-1 (h) -Identity Theft Prevention; Fraud Alerts and Active Duty Alerts - Limitations on Use of Information for Credit Extensions • 15 U.S.C. 1681 s-2 -Responsibilities of Furnishers of Information to Consumer Reporting Agencies • 1 S U.S.C. 1681 m -Requirements on Use of Consumer Reports 4/ 14/2009 6 Village of Plainfield Red Flag Table A B C D E Alerts, Notifications or Suspicious Suspicious Personal Unusual Use or Notice of Theft Wargings from Documents LD. Tnfowmation Suspicious Activity Consumer Reporting related to the Covered A enc Account 1. A Consumer Repvrting 2. Documents 7. Personal ID is 1 S. Addition of 13. Utility is nviified Agency alerts the Village provided fvr ID inconsistent with authorized users request by law enforcement of a credit freeze, address appear to he other sources of shortly following an officials or others, that disparity, or that an altered, forged or information, address change request. it has opened a account has been noted to inauthentic. fraudulent account for a have abusive or fraudulent person engaged in activity. identity theft. 3. The photo or 8. Personal ID l (. Payments are made physical provided is not in a manner associated description is not consistent with other with fraud. 1~'vr example, consistent with the personal ID a deposit or initial appearance of the information provided payment is made and no applicant. by customer. payments are made thereafter. 4. information 9. Personal ID 17. A covered account given to open the information provided with a stable history account is not is the same as shows irregularities. consistent with the information shown ID of the on other fraudulent applicant. applications. 5. Other 10. Personal ID is 1$. A covered account information is nvt consistent with that has been inactive for consistent with fraudulent activity, along period of time is infvrmativn vn file such as fictitious used. with the Village. address, or phone number is invalid. 6. Application 11. ID infvrmation is 19. Mail sent to customer appears to have the same as another is repeatedly returned. been altered or customer. forged. 12. The customer 20. Customer notifies fails to provide all utility that they are not needed personal ID receiving their bill. upon request. 13. Personal ID is 21. The utility is notified inconsistent with of unauthorized charges utility records. or transactions in connection with a customer's account. 14. Challenge questions cannot be answered. 4il4izoo9