2008 10-21 CCP - Laserfiche WebLink

Home

1. PROGRAM ADOPTION Federal Regulations require the City of Gem Lake ("City") to establish an 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 to detect, prevent and mitigate identity theft. This program was developed with oversight and approval of the Program Administrator and the City Council. After consideration of the nature and scope of the City's activitiesincluded the provision of public utilities, the Program Administrator determined that this Program was appropriate for the City's utility operations, and; the program was subsequently adopted by the City Council on October 21, 2008. Il. 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 t❑ 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 definitions used in this Program The Red Flags Rule defines "Identity Theft" as "fraud committed using the identifying information of another person" and a "Red Flag" as a pattern, practice, or specific activity that indicates the possible existence of Identity Theft. According to the Rule, a municipal utility is a creditor subject to the Rule requirements. 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." All the City's utility 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: