HomeMy WebLinkAbout2008-10-20-Resolutions 08-233_ID Theft PreventionTHE CITY OF WAUKEE,IOWA
RESOLUTION 08-233
APPROVING AN IDENTITY THEFT PREVENTION PROGRAM PURSUANT TO THE
FEDERAL TRADE COMMISSION'S "RED FLAG"RULE
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE,IOWA
WHEREAS,the City of Waukee,Dallas County,State ofIowa,is a duly organized Municipal
Organization;AND,
WHEREAS,the Waukee City Council wishes to adopt an Identity Theft Prevention Program
designed to detect,prevent and mitigate identity theft in connection with certain utility accounts;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Waukee,Iowa
that it hereby adopts the Identity Theft Prevention Program,attached as Exhibit A,pursuant to
FTC Red Flag Rule,which implements Section 114 of the Fair and Accurate Transaction Act of
2003 16 C.F.R.§681.2.
Passed by the City Council of the City of Waukee,Iowa and approved the 20th day of October
2008.
Attest:
Je
ROLL CALL VOTE
Donald L.Bailey,Jr.
Casey L.Harvey
C.Isaiah McGee
Darlene Stanton
Mike Watts
AYE
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NAY ABSENT ABSTAIN
Exhibit A
City of Waukee,Iowa
Identity Theft Prevention Program
Implemented as of October 20th,2008
I.INTRODUCTION
The City of Waukee("Utility")developed this Identity Theft Prevention Program
("Program")pursuant to the Federal Trade Commission's ("FTC")Red Flag Rule,which
implements Section 114 of the Fair and Accurate Credit Transaction Act of2003.16 C.F.R.§
681.2.This Program is designed to detect,prevent and mitigate Identity Theft in connection
with the opening and maintenance of certain utility accounts.For purposes of this Program,
"Identity Theft"is considered to be "fraud committed using the identifying information of
another person."The accounts addressed by the Program,("Accounts"),are defined as:
A.An account the Utility offers or maintains primarily for personal,family or
household purposes,that involves multiple payments or transactions;and
B.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.
This Program was developed with oversight and approval of the City of Waukee,
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,the City Council determined
that this Program was appropriate for the City of Waukee and therefore approves this Program
on October 20'\2008.
II.IDENTIFICATION OF RED FLAGS.
A "Red Flag"is a pattern,practice,or specific activity that indicates the possible
existence ofIdentity Theft.In order to identify relevant Red Flags,the Utility considered 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 Consumer Reporting Agencies or Local Law
Enforcement.
1.Receiving a report or notice from a consumer reporting agency.
2.Receiving a report of fraud with a consumer report or local law
enforcement.
3.Receiving indication from a consumer report of activity that is inconsistent
with a customer's usual pattern or activity.
B.Suspicious Documents.
1.Provided documents that are for identification that appear to be forged or
altered.
2.Documentation on which a person's photograph or physical description is
not consistent with the person presenting the documentation.
3.Documentation with information that is not consistent with existing
customer information (such as if a person's signature on a check appears
forged).
4.Receiving an application for service that appears to have been altered or
forged.
5.A person's identifying information is inconsistent with other sources of
information (such as an address not matching an address on a consumer
report or a SSN that was never issued).
6.A person's identifying information is inconsistent with other information
the customer provides (such as inconsistent SSNs or birth dates).
7.A person's identifying information is the same as shown on other
applications found to be fraudulent.
8.A person's identifying information is consistent with fraudulent activity
(such as an invalid phone number or fictitious mailing address).
9.A person's SSN is the same as another customer's SSN.
10.A person's address or phone number is the same as that of another person.
11.A person fails to provide complete personal identifying information on an
application when reminded to do so.
12.A person's identifying information is not consistent with the information
that is on file for the customer.
C.Unusual Use Of or Suspicious Activity Related to an Account.
I.A change of address for an Account followed by a request to change the
Account holder's name.
2.An account being used in a way that is not consistent with prior use (such
as late or no payments when the Account has been timely in the past).
3.Mail sent to the Account holder is repeatedly returned as undeliverable.
4.The Utility receives notice that a customer is not receiving his paper
statements.
5.The Utility receives notice that an Account has unauthorized activity.
6.Breach in a Utility's computer system.
7.Unauthorized access to or use of customer Account information.
D.Notice regarding possible identity theft.
1.The Utility receives notice from a customer,an identity theft victim,law
enforcement or any other person that it has opened or is maintaining a
fraudulent Account for a person engaged in Identity Theft.
III.DETECTION OF RED FLAGS.
In order to detect any of the Red Flags identified above 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.All applications shall be made in person.
2.Require the following identifying information:name,date of birth,
residential or business address,principal place of business for an entity,
government issued picture identification.
3.Request SSN and drivers license number at time of application.
4.Verify with landlord the identity of the tenant.
5.Verify the customer's identity by copying and reviewing a driver's license or
other identification card.
6.Review documentation showing the existence of a business entity
7.Independently contact the customer if necessary.
8.Account changes require proof of identity.
9.Name changes including those caused by marriage and/or divorce require
documentation to be brought in for proof.
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 within an account:
1.Verify the identification of customers ifthey request information (in
person,via telephone,via facsimile,via email).
2.Verify the validity of requests to change billing addresses.
3.Verify changes in banking information given for billing and payment
purposes.
IV.PREVENTING AND MITIGATING IDENTITY THEFT.
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.Terminate services.
5.Not open a new Account.
6.Close an existing Account.
7.Notify law enforcement.
8.Determine that no response is warranted under the particular circumstances.
9.Notify the Program Administrator (as defmed below)for determination of
the appropriate step(s)to take.
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:
1.Privacy Officers will be the Utility Account Specialist and Finance
Director.
2.Each workstation will make sure the computer monitor is turned so that
customers at the counter cannot see private information.
3.All computers are password protected and logged off when not in use.
4.Password-activated screen savers will be used to lock employee computers
after a period of inactivity.
5.Passwords will not he shared or posted near workstations.
6.Private information is stored in locked files until the account is inactive for
at least one year at which time it will be shredded.
7.Application and service changes are required to be made in person.
8.The utility office is set up so non employees cannot access the computers
or trash to obtain information illegally.
9.Private information is kept under lock and key.
10.Only specially identified employees with a legitimate need will have
access to the key.
II.Employees maintain a "Clean Desk Policy"which means when the
employee is going to be away from the desk paperwork will be removed
from the desk or put into a locked file.
12.The use oflaptops is restricted to those employees who need them to
perform their jobs.
13.Laptops are stored in a secure place.
14.Laptop users will not store sensitive information on their laptops.
V.UPDATING THE PROGRAM AND THE RED FLAGS
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 yearly the Program
Administrator 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 Program Administrator will determine
whether changes to the Program,including the listing of Red Flags,are warranted.If warranted,
the Program Administrator will present the City Council with his or her recommended changes
and City Council will make a determination of whether to accept,modify or reject those changes
to the Program.
VI.PROGRAM ADMINISTRATION.
A.Oversight.
The Utility's Program will be overseen by a Program Administrator.The Program
Administrator shall be the Director of Public Works and/or the City Administrator.
The Program Administrator will be responsible for the Program's 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,reviewing
and,if necessary,approving changes to the Program.
B.Staff Hiring and Training.
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.Special procedures will be followed when hiring
new employees who would have access to the customer accounts.
1.Check references or do background checks before hiring employees who
will have access to sensitive data.
2.New employees sign an agreement to follow our confidentiality and
security standards for handling sensitive data.
3.Access to customer's personal identifying information is limited to the
employees who need to know.
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 steps to eusure the service provider performs
its activity in accordance with reasonable policies and procedures designed to detect,prevent,
and mitigate the risk ofIdentity Theft.