HomeMy Public PortalAboutRES 08/06Resolution No. 008 -6
A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN
OF GULF STREAM, FLORIDA APPROVING AN "IDENTITY
THEFT PREVENTION PROGRAM" IN ACCORDANCE WITH
THE REQUIREMENTS OF THE FAIR AND ACCURATE CREDIT
TRANSACTIONS ACT OF 2003; PROVIDING AN EFFECTIVE
DATE; AND FOR OTHER PURPOSES.
WHEREAS, the Fair and Accurate Credit Transactions Act of 2003 requires all
creditors with covered accounts to implement an identity theft prevention program by
November 1, 2008; and
WHEREAS, the Town of Gulf Streams' utility billing practices fall within the
definition of a creditor with a covered account; and
WHEREAS, the Town desires to comply with the aforesaid requirements and in
furtherance thereof has prepared an identity theft prevention program that complies with
the requirements of the Fair and Accurate Credit Transactions Act of 2003; and
WHEREAS, the Town Commission has determined that this identity theft
prevention program would serve the interests, and promote the health, safety and
welfare of the citizens of GULF STREAM.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COMMISSION OF
THE TOWN OF GULF STREAM, FLORIDA, THAT:
Section 1: The Town Commission of the Town of Gulf Stream, a municipal
corporation, hereby approves the "Identity Theft Prevention Program" attached hereto as
Exhibit "A ".
Section 2: This Resolution shall take effect immediately upon its passage
and approval, as provided by law.
PASSED AND ADOPTED this �� day of A/o ve.tn be r 2008.
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MAYOR
(SEAL)
ATTEST:
P'), Y-,: ' K �
TOWN CLERK
TOWN OF GULF EAM, FLORIDA
CO ISSIONER
COMMISSIONER
COMMISSIONER
COMMISSIONER
Exhibit
TOWN OF GULF STREAM
UTILITIES Identity Theft
Prevention Program
Effective beginning November 14, 2008
A
I. PROGRAM ADOPTION
The Town of Gulf Stream 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. 6812. This Program was developed with oversight and approval of
the Town Manager and the Town Commission. 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, the Town Manager and the Town Commission determined that this
Program was appropriate for the Town's utility operations, and therefore approved this
Program on November 14, 2008.
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. 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 definition used in this Program
The Red Flags Rule defines "Identify Theft" as "fraud committed using the identifying
information of another person" and a "Red Flag" as a pattern, practice, or specify that
indicates the possible existence of Identity Theft.
According to the Rule, a municipal utility is a creditor subject to the rule requirement.
The Rule defines creditors "to include finance companies, automobile dealers, mortgage
brokers, utility companies, and telecommunication companies. Where non - profit and
government entities defer payment for goods or services, they, too, are to be considered
creditors."
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. Under
the Rule, a "covered account" is:
1. Any account the Utility offers or maintains primarily for personal, family
or household purposes, that involves multiple payments or transactions;
and
2. 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.
"Identifying information" is defined under the Rule as " 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, employer or taxpayer identification number, unique electronic
identification number computer's Internet Protocol address or routing code.
III. IDENTIFICATION OF RED FLAG
In order to identify 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.
A. Notifications and Warnings From Credit Reporting Agencies
Red Flalls
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;
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.
B. Suspicious Documents
Red Flags
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.
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C. Suspicious Personal Identifying Information
Red Flags
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
8. A person's identifying information is not consistent with the information that is
on file for the customer.
D. Suspicious Account Activity or Unusual Use of Account
Red Flags
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 computer account information.
E. Alert from Others
Red Flags
1. 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.
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IV. DETECTING RED FLAGS
A. 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.
Detect
1. Require certain identifying information such as property owner's name and /or,
resident's name if other than property owner;
2. Verify the customer's identity;
B. Exisiting 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.
Detect
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 MIGITATING IDENTITY THEFT
In the event Utility personnel detected and identified Red Flags, such as personnel shall take one
or more of the following steps, depending on the degree of risk posed by the Red Flag:
Prevent and Mitigate
1. Continue to monitor an account for evidence if Identity Theft;
2. Contact the customer;
3. Not open a new account;
4. Close an existing account;
5. Reopen an account with a ne number;
6. Notify the Program Administer for determination of the appropriate step(s) to take;
7. Notify law enforcement; or
8. Determine that no response is warranted under the particular circumstances.
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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 complete and secure destruction of paper documents and computer files
containing customer information as permitted under the Florida Records Destruction
Schedule;
2. Ensure that office computers are password protected and that computer screens lock
after a set period of time;
3. Keep offices clear of papers containing customer information;
4. Request only the last 4 digits of social security numbers (if any);
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;
7. Do not post customer accounts on any website.
VI. PROGRAM UPDATES
This program will be periodically reviewed and updated to reflect changes in risks to customers
and the soundness of the Utility from Identity Theft. At least one per year, the Town manager
will consider the Utility's experiences with Identity Theft situation 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 Town Manager will determine whether changes to
the Program, including the listing of Red Flags, are warranted. If warranted, the Town Manager
will update the Program or present the Town Commission with the recommended changes and
the Town Commission 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 an Identity
Theft Committee for the Utility. The Committee is headed by the Town Manager. Two or more
other individuals appointed by the Town Manager comprise the remainder of the committee
membership. The Town 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.
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B. Staff Training and Reports
Utility staff responsible for implementing the Program shall be trained either by or under the
direction of the Town Manager in the detection of Red Flags, and the responsive steps to be
taken when a Red Flag is detected.
C. Service Providers 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 Town Manager.
D. Specific Program Elements and Confidentiality
For the effectiveness of Identity Theft prevention Programs, the Red Flag rule envisions a degree
of confidentially regarding the Utility's specific practices relating to Identity Theft detection,
prevention and mitigation. Therefore, under this Program, knowledge of such specific practices
are 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.
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