A. Short Title: This section shall be known as the IDENTITY THEFT PREVENTION PROGRAM.
B. Purpose: The purpose of this section is to comply with 16 CFR section 681.2 in order to detect, prevent and mitigate identity theft by identifying and detecting identity theft red flags and by responding to such red flags in a manner that will prevent identity theft.
C. Process Of Establishing A Covered Account: As a precondition to opening a covered account with the village, each applicant shall provide the village with personal identifying information of the customer such as a valid government issued identification card containing a photograph of the customer or, for customers who are not natural persons, a photograph of the customer's agent opening the account. Such information shall be entered directly into the village computer system and shall not otherwise be recorded.
D. Access To Covered Account Information:
1. Access to customer accounts shall be password protected and shall be limited to authorized village personnel.
2. Any unauthorized access to or other breach of customer accounts is to be reported immediately to the village administrator and the password changed immediately.
3. Personal identifying information included in customer accounts is considered confidential, and any request or demand for such information shall be immediately forwarded to the village administrator and the chief of police.
E. Sources And Types Of Red Flags: All employees responsible for or involved in the process of opening a covered account, restoring a covered account or accepting payment for a covered account shall check for red flags as indicators of possible identity theft, and such red flags may include:
1. Documents provided for identification that appear to be altered or forged.
2. Identification on which the photograph or physical description is inconsistent with the appearance of the applicant or customer.
3. The customer fails to make the first payment or makes an initial payment but no subsequent payments.
4. Mail sent to the customer is returned repeatedly as undeliverable although transactions continue to be conducted in connection with the customer's account.
5. The village is notified that the customer is not receiving paper account statements.
F. Prevention And Mitigation Of Identity Theft: In the event that any village employee responsible for opening a new covered account or involved in restoring an existing covered account or accepting payment for a covered account becomes aware of red flags indicating possible identity theft with respect to existing covered accounts, such employee shall use his or her discretion to determine whether such red flag or combination of red flags suggests a threat of identity theft. If, in his or her discretion, such employee determines that identity theft or attempted identity theft is likely or probable, such employee shall immediately report such red flags to the village administrator. If the village administrator, in his or her discretion, determines that further action is necessary, a village employee shall perform one or more of the following responses:
1. Contact the customer;
2. Make the following changes to the account if, after contacting the customer, it is apparent that someone other than the customer has accessed the customer's covered account:
a. Change any account numbers, passwords, security codes, or other security devices that permit access to an account; or
b. Close the account;
3. Cease attempts to collect additional charges from the customer and decline to sell the customer's account to a debt collector in the event that the customer's account has been accessed without authorization and such access has caused additional charges to accrue;
4. Notify law enforcement in the event that someone other than the customer has accessed the customer's account causing additional charges to accrue or accessing personal identifying information; or
5. Take other appropriate action to prevent or mitigate identity theft.
G. Updating Program: The village board of trustees shall annually review and, as deemed necessary by the board, update the identity theft prevention program along with any relevant red flags in order to reflect changes in risks to customers or to the safety and soundness of the village and its covered accounts from identity theft.
H. Program Administration:
1. The administration/finance department office manager is responsible for oversight of the program and for program implementation. The village administrator is responsible for reviewing reports prepared by staff regarding compliance with red flag requirements and with recommending material changes to the program, as necessary in the opinion of the village administrator, to address changing identity theft risks and to identify new or discontinued types of covered accounts. Any recommended material changes to the program shall be submitted to the village board of trustees for consideration.
2. The administration/finance department office manager will report to the village administrator, at least annually, on compliance with the red flag requirements. The report will address material matters related to the program and evaluate issues such as:
a. The effectiveness of the policies and procedures of the village in addressing the risk of identity theft in connection with the opening of covered accounts and with respect to existing covered accounts.
b. Service provider arrangements.
c. Significant incidents involving identity theft and management response.
d. Recommendations for material changes to the program.
3. The administration/finance department office manager is responsible for providing training to all employees responsible for or involved in opening a new covered account, restoring an existing covered account or accepting payment for a covered account with respect to the implementation and requirements of the identity theft prevention program. The administration/finance department office manager shall exercise his or her discretion in determining the amount and substance of training necessary. (Ord. 08-33, 10-21-2008, eff. 10-21-2008)