ORD 2009-33 - Identity Theft Establish Prevention Program 04-07-2009ORDINANCE NO. 2009-33
AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS, ESTABLISHING
AN IDENTITY THEFT PREVENTION PROGRAM, TO SET OUT
DEFINITIONS, POLICIES AND PROCEDURES FOR IMPLEMENTATION OF
THE IDENTITY THEFT PREVENTION PROGRAM; TO PROVIDE A
REPEALING CLAUSE, TO PROVIDE A SAVINGS AND SEVERABILITY
CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Federal Trade Commission adopted rules pertaining to an Identity Theft
Prevention pursuant to the Red Flags Rule which implements Section 114 of the Fair and
Accurate Credit Transactions Act of 2003 which requires that creditors adopt an Identity
Theft Prevention Program on or before May 1, 2009; and
WHEREAS, the Red Flags Rule defines creditor to include all utility companies and the
City owns and provides utility services and /or accepts payments for municipal utility
services and is therefore classified as a creditor; and
WHEREAS, the City Council has requested that City personnel to develop such Identity
Theft Prevention Program and such personnel recommend the Identity Theft Prevention
Program attached hereto and incorporated herein as Exhibit "A" ( "Program"); and
WHEREAS, the City Council has reviewed the Program and believes it fulfills, complies
and implements the Red Flags Rule and other requirements outlined by the Federal Trade
Commission; and
WHEREAS, the City Council finds that it is in the public interest to approve the
Program.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF HUNTSVILLE, TEXAS, THAT:
Section 1. Findings. The foregoing recitals are hereby found to be true and correct and
are hereby adopted by the City Council and made a part hereof for all purposes as
findings of fact.
Section 2. The City Council hereby adopts the Identity Theft Prevention Program, as is
more particularly set out in Exhibit A.
Section 3. Implementation. All procedures and requirements of The Identity Theft
Prevention Program shall be implemented as outlined in the Exhibit A.
Section 4. All Ordinances of the City of Huntsville in conflict with the provisions of this
Ordinance are hereby repeated to the extent of such conflict, and all other provisions of
the Ordinances of the City of Huntsville not in conflict with the provisions of this
Ordinance shall remain in full force and effect.
Section 5. Should any sentence, paragraph, subdivision, clause, phrase or section of this
Ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall
not affect the validity of this Ordinance as a whole, or any part or provision thereof other
than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the
validity of the Code of Ordinances as a whole.
Section 6. This Ordinance shall take effect immediately from and after its passage and
the publication of the caption, as the law in such cases provide.
Section 7. Open Meetings. That it is hereby officially found and determined that the
meeting at which this ordinance is passed was open to the public as required and that
public notice of the time, place, and purpose of said meeting was given as required by the
Open Meeting Act, Capt. 551, Loc. Gov't. Code.
PASSED AND APPROVED on this 7th day of April, 2009
Brim, City Secretary
APPROVED AS TO FORM:
City Attorney
CITY OF HUNTSVILLE, TEXAS
Identity Theft Prevention Program
Effective beginning May 1, 2009
IDENTITY THEFT POLICY
L PROGRAM ADOPTION
The City of Huntsville, Walker County, Texas, a home -rule municipality ( "City ") 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 for the Utility Department of the
City ( "Utility ") with the approval of the 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's
Utility, and therefore approved this Program on P `, 2009.
II. GENERAL INFORMATION
A ruling known as the "Identity Theft Red Flags Regulation" was jointly issued by the Federal
Trade Commission, Office of Thrift Supervision and several other governing agencies;
implementing section 114 of the Fair and Accurate Credit Transactions Act of 2003 (FACTA)
and is effective on May 1, 2009.
The Identity Theft Red Flags Regulation ( "Rule ") requires financial institutions to develop and
implement an Identity Theft Prevention Program designed to detect, prevent and mitigate identity
theft in connection with the opening of a covered account or an existing covered account and to
provide for continued administration of the Program in compliance with Part 681 of Title 16 of the
Code of Federal Regulations which implemented Sections 114 and 315 of the Fair and Accurate
Credit Transactions Act (FACTA) of 2003.
Under the regulations only those financial institutions that offer or maintain 'covered accounts'
must develop and implement a written program. A 'covered account' is defined as (1) an account
primarily used for personal, family, or household purposes, that involves or is designed to permit
multiple payments of transactions (2) any other account for which there is a reasonably
foreseeable risk to customers or the safety and soundness of the financial institution or creditor
identity theft.
The Agencies believe that accounts such as credit cards, mortgage loans, cell phone, utili
checking, automobile loans, and savings accounts are examples of accounts designed to permit
multiple payments or transactions and also contain a reasonably foreseeable risk of identity theft.
III. PURPOSE
To ensure the City of Huntsville has program in place to detect, prevent and diminish identity
theft in connection with the opening of utility accounts, to establish written procedures for
security and storing of personal information.
IV. APPLICATION
This policy applies to all city employees and service providers that have access to Utility Billing
customers' personal information that is submitted in person, by fax, mail, email and over the
internet.
V. DEFINITIONS
City: The City of Huntsville, Texas
Covered Account: 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.
Creditors: 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."
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 number,
employer or taxpayer identification number, unique electronic identification number, computer's
Internet Protocol address, or routing code.
Identity Theft: A fraud committed using the identifying information of another person.
Program: The Identity Theft Prevention Program for the City.
Program Administrator: The
Program.
is the Program Administrator for the
Red Flags: A pattern, practice, or specific activity that indicates the possible risk of identity theft.
Utility: The Utility is the Utility Department for the City.
VI. POLCIY INDENTIFICATION OF RED FLAGS
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:
A. Suspicious Documents
Red Flags
1. Documents provided for identification appear to be altered or forged or inauthentic;
2. The photograph or physical description on the identification is not consistent with the
appearance of the customer requesting service.
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.
5. Lease submitted for proof of residency appears to be altered or forged.
B. Suspicious Personal Identifying Information
Red Flags
I. Information on the identification is not consistent with information provided by
the person requesting service (example: inconsistent birth dates).
2. Information is not consistent with information that is on file (i.e. previous application
submitted with driver's license).
3. The SSN submitted is same as another customer's.
4. Personal information submitted is associated with known fraudulent activity or consistent with
fraudulent activity (such as an invalid phone number or fictitious billing address).
5. Address or phone number is the same as that of another person..
6. Identifying information presented that is inconsistent with other sources of information.
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).
C. Suspicious Account Activity
Employees will review billing and payment for unusual account activity, a breach in the computer
or filing system and any unusual account changes. Notes shall be maintained of notifications,
unusual activities and observations.
Red Flags
1. Notification of a chargeback received from the bank.
2. New account requested immediately after disconnection for non - payment.
3. Change of address for an account followed by a request to change the account holder's name;
4. Payments stop on an otherwise consistently up -to -date account;
5. Account used in a way that is not consistent with prior use (example: very high activity);
6. Mail sent to the account holder is repeatedly returned as undeliverable;
7. Notice to the Utility that a customer is not receiving mail sent by the Utility;
8. Notice to the Utility that an account has unauthorized activity;
9. Breach in the Utility's computer system security; and
10. Unauthorized access to or use of customer account information.
E. Alerts from Others
Red Flag
1. Notice to the Utility from a customer, identity theft victim, fraud detection service, law
enforcement or other person that it has opened or is maintaining a fraudulent account for a
person engaged in Identity Theft.
DETECTING RED FLAGS
A. New Accounts
To ensure proper identification verification and to be able to detect any of the Red
Flags above associated with the opening of a new account, effective May 1, 2009 all
requests for new service will require/ provide the following:
Detect
1. Show a government issued photo ID to initiate service;
2. Include a photo copy of proper identification when request is submitted by fax, email, or
mail;
3. Be submitted by the responsible party; parents, siblings or any other interested party may
not activate service on behalf of another person;
4. 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;
5. Independently contact the customer or business.
B. 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:
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 close accounts or change billing addresses.
VII. Identity Theft Notification
A zero tolerance policy is in effect for all fraudulent transactions within the Utility Billing
Division. Once written notification and verification is received of fraudulent activity from a
customer, banking institution, or collection agency; Utility Billing will
1. proceed with notation
2. take corrective action on the account
3. gather all pertinent information that is available and immediately contact the City of Huntsville
Police Department to initiate a criminal investigation and
4. notify customer and change password.
IX. Data Security and Stora¢e
A. Internal Database Security: All employees shall undergo a background check conducted
by Human Resources Department prior to hiring. Employees are assigned security levels
which limit access to sensitive data. Access into the system requires a password assigned by
the System Administrator. Upon termination, employee passwords are immediately disabled.
B. Disclosure of personal information: Information is used as a means of identification, for
internal verification or administrative purposes, credit checks and debt collection purposes.
Information regarding security compliance for the debt collection agency is on file in the Utility
Billing Office.
C. Data Storage: All hard copy information is stored in filing cabinets in the Utility Billing office.
Credit card information is stored in the vault and accessibly by the Utility Billing Supervisor.
D. Data Retention: Records are disposed of in accordance with state and federal law, including the
local record retention schedule issued by the Texas State Library and Archives Commission.
X. Periodic Review and Reporting
The policy must be approved by the City Council and periodically reviewed. The Utility Billing
Supervisor will conduct annual review of the current policy and report any fraudulent activity to
the Finance Director, The Finance Director will approve any recommended changes in policy.
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 h #ormation:
1. Ensure that its website is secure or provide clear notice that the website is not secure;
2. Where and when allowed, ensure complete and secure destruction of paper documents and
computer files containing customer information;
3. Ensure that office computers are password protected and that computer screens lock after a set
period of time;
4. Change passwords on office computers on a regular basis;
5. Ensure all computers are backed rep properly and any backup information is.secured,
6 Keep offices clear ofpapers containing customer information;
7. Ensure computer virus protection is up to date; and
g. Require and keep only the kinds of customer information that are necessary for utility purposes.
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 or contract amendment, that service providers have such policies and
procedures in place; and
2. Require, by contract or contract amendment, that service providers review the Utility's Program
and report any Red Flags to the Program Administrator.
D. Specdfu Program Elements and Confidentiality
For the effectiveness of Identity Theft prevention Programs, the Red Flag ,Rule envisions a degree
of confidentiality regarding the Utility's speck 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.
ORDINANCE NO. 2009-33
AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS, ESTABLISHING
AN IDENTITY THEFT PREVENTION PROGRAMM, TO SET OUT
DEFINITIONS, POLICIES AND PROCEDURES FOR IMPLEMENTATION OF
THE IDENTITY THEFT PREVENTION PROGRAM; TO PROVIDE A
REPEALING CLAUSE, TO PROVIDE A SAVINGS AND SEVERABILITY
CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Federal Trade Commission adopted rules pertaining to an Identity Theft
Prevention pursuant to the Red Flags Rule which implements Section 114 of the Fair and
Accurate Credit Transactions Act of 2003 which requires that creditors adopt an Identity
Theft Prevention Program on or before May 1, 2009; and
WHEREAS, the Red Flags Rule defines creditor to include all utility companies and the
City owns and provides utility services and/or accepts payments for municipal utility
services and is therefore classified as a creditor; and
WHEREAS, the City Council has requested that City personnel to develop such Identity
Theft Prevention Program and such personnel recommend the Identity Theft Prevention
Program attached hereto and incorporated herein as Exhibit "A" ( "Program "); and
WHEREAS, the City Council has reviewed the Program and believes it fulfills, complies
and implements the Red Flags Rule and other requirements outlined by the Federal Trade
Commission; and
WHEREAS, the City Council finds that it is in the public interest to approve the
Program.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF HUNTSVILLE, TEXAS, THAT:
Section 1. Findings. The foregoing recitals are hereby found to be true and correct and
are hereby adopted by the City Council and made a part hereof for all purposes as
findings of fact.
Section 2. The City Council hereby adopts the Identity Theft Prevention Program, as is
more particularly set out in Exhibit A.
Section 3. Implementation. All procedures and requirements of The Identity Theft
Prevention Program shall be implemented as outlined in the Exhibit A.
Section 4. All Ordinances of the City of Huntsville in conflict with the provisions of this
Ordinance are hereby repealed to the extent of such conflict, and all other provisions of
the Ordinances of the City of Huntsville not in conflict with the provisions of this
Ordinance shall remain in full force and effect.
Section 5. Should any sentence, paragraph, subdivision, clause, phrase or section of this
Ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall
not affect the validity of this Ordinance as a whole, or any part or provision thereof other
than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the
validity of the Code of Ordinances as a whole.
Section 6. This Ordinance shall take effect immediately from and after its passage and
the publication of the caption, as the law in such cases provide.
Section 7. Open Meetings. That it is hereby officially found and determined that the
meeting at which this ordinance is passed was open to the public as required and that
public notice of the time, place, and purpose of said meeting was given as required by the
Open Meeting Act, Capt. 551, Loc. Gov't. Code.
PASSED AND APPROVED on this 7th day of April, 2009.
CITY OF HUNTSVILLE, TEXAS
J. (furt*r; Mayor
teph e Brim, City Secretary
APPROVED AS TO FORM:
City Attorney
CITY OF HUNTSVILLE, TEXAS
Identity Theft Prevention Program
Effective beginning May 1, 2009
IDENTITY THEFT POLICY
I. PROGRAM ADOPTION
The City of Huntsville, Walker County, Texas, a home -rule municipality ( "City ") 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 for the Utility Department of the
City ( "Utility ") with the approval of the 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 t is Program was appropriate for the City's
Utility, and therefore approved this Program on PACT -7 2009.
H. GENERAL INFORMATION
A ruling known as the "Identity Theft Red Flags Regulation" was jointly issued by the Federal
Trade Commission, Office of Thrift Supervision and several other governing agencies;
implementing section 114 of the Fair and Accurate Credit Transactions Act of 2003 (FACTA)
and is effective on May 1, 2009.
The Identity Theft Red Flags Regulation ( "Rule ") requires financial institutions to develop and
implement an Identity Theft Prevention Program designed to detect, prevent and mitigate identity
theft in connection with the opening of a covered account or an existing covered account and to
provide for continued administration of the Program in compliance with Part 681 of Title 16 of the
Code of Federal Regulations which implemented Sections 114 and 315 of the Fair and Accurate
Credit Transactions Act (FACTA) of 2003.
Under the regulations only those financial institutions that offer or maintain 'covered accounts'
must develop and implement a written program. A 'covered account' is defined as (1) an account
primarily used far personal, family, or household purposes, that involves or is designed to permit
multiple payments of transactions (2) any other account for which there is a reasonably
foreseeable risk to customers or the safety and soundness of the financial institution or creditor
identity theft.
The Agencies believe that accounts such as credit cards, mortgage loans, cell phone, utility,
checking, automobile loans, and savings accounts are examples of accounts designed to permit
multiple payments or transactions and also contain a reasonably foreseeable risk of identity theft.
III. PURPOSE
To ensure the City of Huntsville has program in place to detect, prevent and diminish identity
theft in connection with the opening of utility accounts, to establish written procedures for
security and storing of personal information.
IV. APPLICATION
This policy applies to all city employees and service providers that have access to Utility Billing
customers' personal information that is submitted in person, by fax, mail, email and over the
internet.
IV
City: The City of Huntsville, Texas
Covered Account: 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.
Creditors: 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."
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 number,
employer or taxpayer identification number, unique electronic identification number, computer's
Internet Protocol address, or routing code.
Identity Theft: A fraud committed using the identifying information of another person.
Program: The Identity Theft Prevention Program for the City.
Program Administrator: The
Program.
is the Program Administrator for the
Red Flags: A pattern, practice, or specific activity that indicates the possible risk of identity theft.
Utility: The Utility is the Utility Department for the City.
VI. POLCIY INDENTIFICATION OF RED FLAGS
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:
A. Suspicious Documents
Red Flags
1. Documents provided for identification appear to be altered or forged or inauthentic;
2. The photograph or physical description on the identification is not consistent with the
appearance of the customer requesting service.
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.
5. Lease submitted for proof of residency appears to be altered or forged.
B. Suspicious Personal Identifying Information
Red Flags
1. Information on the identification is not consistent with information provided by
the person requesting service (example: inconsistent birth dates).
2. Information is not consistent with information that is on file (i.e. previous application
submitted with driver's license).
3. The SSN submitted is same as another customer's.
4. Personal information submitted is associated with known fraudulent activity or consistent with
fraudulent activity (such as an invalid phone number or fictitious billing address).
5. Address or phone number is the same as that of another person..
6. Identifying information presented that is inconsistent with other sources of information.
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).
C. Suspicious Account Activity
Employees will review billing and payment for unusual account activity, a breach in the computer
or filing system and any unusual account changes. Notes shall be maintained of notifications,
unusual activities and observations.
Red Flags
1. Notification of a chargeback received from the bank.
2. New account requested immediately after disconnection for non- payment.
3. Change of address for an account followed by a request to change the account holder's name;
4. Payments stop on an otherwise consistently up-to -date account,
5. Account used in a way that is not consistent with prior use (example: very high activity);
6. Mail sent to the account holder is repeatedly returned as undeliverable;
7. Notice to the Utility that a customer is not receiving mail sent by the Utility;
8. Notice to the Utility that an account has unauthorized activity;
9. Breach in the Utility's computer system security; and
10. Unauthorized access to or use of customer account information.
E. Alerts from Others
Red Flae
1. Notice to the Utility from a customer, identity theft victim, fraud detection service, law
enforcement or other person that it has opened or is maintaining a fraudulent account for a
person engaged in Identity Theft.
DETECTING RED FLAGS
A. New Accounts
To ensure proper identification verification and to be able to detect any of the Red
Flags above associated with the opening of a new account, effective May 1, 2009 all
requests for new service will require/ provide the following:
Detect
1. Show a government issued photo ID to initiate service;
2. Include a photo copy of proper identification when request is submitted by fax, email, or
mail;
3. Be submitted by the responsible parry; parents, siblings or any other interested party may
not activate service on behalf of another person;
4. 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;
5. Independently contact the customer or business.
B. 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:
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 close accounts or change billing addresses.
VII. Identity Theft Notification
A zero tolerance policy is in effect for all fraudulent transactions within the Utility Billing
Division. Once written notification and verification is received of fraudulent activity from a
customer, banking institution, or collection agency; Utility Billing will
1. proceed with notation
2. take corrective action on the account
3. gather all pertinent information that is available and immediately contact the City of Huntsville
Police Department to initiate a criminal investigation and
4. notify customer and change password.
IX. Data Security and Storage
A. Internal Database Security: All employees shall undergo a background check conducted
by Human Resources Department prior to hiring. Employees are assigned security levels
which limit access to sensitive data. Access into the system requires a password assigned by
the System Administrator. Upon termination, employee passwords are immediately disabled.
B. Disclosure of personal information: Information is used as a means of identification, for
internal verification or administrative purposes, credit checks and debt collection purposes.
Information regarding security compliance for the debt collection agency is on file in the Utility
Billing Office.
C. Data Storage: All hard copy information is stored in filing cabinets in the Utility Billing office.
Credit card information is stored in the vault and accessibly by the Utility Billing Supervisor.
D. Data Retention: Records are disposed of in accordance with state and federal law, including the
local record retention schedule issued by the Texas State Library and Archives Commission.
X. Periodic Review and Reuortin¢
The policy must be approved by the City Council and periodically reviewed. The Utility Billing
Supervisor will conduct annual review of the current policy and report any fraudulent activity to
the Finance Director. The Finance Director will approve any recommended changes in policy.
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. Where and when allowed, ensure complete and secure destruction of paper documents and
computer files containing customer information;
3. Ensure that office computers are password protected and that computer screens lock after a set
period of time;
4. Changepasswords on office computers on a regular basis;
5. Ensure all computers are backed up properly and any backup information is secured, -
6. Keep offices clear ofpapers containing customer information;
7. Ensure computer virus protection is up to date; and
8. Require and keep only the kinds of customer information that are necessary for utility purposes.
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 or contract amendment, that service providers have such policies and
procedures in place; and
2. Require, by contract or contract amendment, that service providers review the Utility's Program
and report any Red Flags to the Program Administrator.
D. Specific Program Elements and Confidentiality
For the effectiveness of Identity Theft prevention Programs, the Red Flag Rule envisions a degree
of confidentiality regarding the Utility's specific practices relating to Identity Theft detection, prevention
and mitigation. Therefore, under this Program, knowledge ofsuch 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.