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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:
(A) Alerts from consumer reporting agencies, fraud detection agencies or service providers that may be received in the future by the city. The city does not subscribe to or contract with any consumer reporting agency at this time.
(B) Suspicious documents. Examples of suspicious documents 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) Identification on which the information is inconsistent with information provided by the applicant or customer; or
(4) An application that appears to have been altered or forged, or appears to have been destroyed and reassembled.
(C) Suspicious personal identification, such as suspicious address change. Examples of suspicious identifying information include:
(1) Personal identifying information or a phone number that is inconsistent with external or internal information sources used by the city;
(2) Personal identifying information provided by the customer that is not consistent with other personal identifying information provided by the customer;
(3) Personal identifying information or a phone number or address that is associated with known fraudulent applications or activities as indicated by internal or external sources used by the city;
(4) Other information provided, such as a fictitious mailing address, mail drop addresses, jail addresses, invalid phone numbers, pager numbers or answering services, is associated with fraudulent activity;
(5) The address or telephone number provided is the same or similar to the account number or telephone number submitted by an unusually large number of applicants or customers;
(6) The applicant or customer fails to provide all required personal identifying information on an application or in response to notification that the application is incomplete;
(7) Personal identifying information is not consistent with personal identifying information that is on file with the city.
(D) Unusual use or suspicious activity relating to a covered account. Examples of suspicious activity include:
(1) Shortly following the notice of a change of address for an account, the city receives a request for the addition of authorized users on the account.
(2) A new revolving credit account is used in a manner commonly associated with known patterns of fraud patterns. For example, the customer fails to make the first payment or makes an initial payment but not subsequent payments.
(3) An account is used in a manner that is not consistent with established patterns of activity on the account. There is, for example:
(a) Nonpayment when there is no history of late or missed payments;
(b) A material change in purchasing or spending patterns.
(4) An account that has been inactive for a long period of time is used (taking into consideration the type of account, the expected pattern of usage and other relevant factors).
(5) Mail sent to the customer is returned repeatedly as undeliverable although transactions continue to be conducted in connection with the customer’s account.
(6) The city is notified that the customer is not receiving paper account statements.
(7) The city is notified of unauthorized charges or transactions in connection with a customer’s account.
(8) The city is notified by the customer, law enforcement or another person that it has opened a fraudulent account for a person engaged in identity theft.
(E) Notice from customers, law enforcement, victims or other reliable sources regarding possible identity theft or phising relating to covered accounts.
(Ord. 09-09, passed 4-20-09)
(A) In the event that any city employee responsible for 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 suggest 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 City Clerk. If, in his or her discretion, the City Clerk deems that identity theft is unlikely or that reliable information is available to reconcile red flags, the City Clerk shall convey this information to the Mayor, who may in his or her discretion determine that no further action is necessary. If the Mayor, in his or her discretion, determines that no further action is necessary, a city employee shall perform one or more of the following responses, as determined to be appropriate by the Mayor:
(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;
(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.
(B) In the event that any city employee responsible for or involved in opening a new covered account becomes aware of red flags indicating possible identity theft with respect to an application for a new account, such employee shall use his or her discretion to determine whether such red flag or combination of red flags suggest that identity theft or attempted identity theft is likely or probable, such employee shall immediately report such red flags to the City Clerk. If, in his or her discretion, the City Clerk deems that identity theft is unlikely or that reliable information is available to reconcile red flags, the City Clerk shall convey this information to the Mayor, who may in his or her discretion determine that no further action is necessary. If the Mayor, in his or her discretion determines that further action is necessary, a city employee shall perform one or more of the following responses, as determined to be appropriate by the Mayor:
(1) Request additional identifying information from the applicant;
(2) Deny the application for the new account;
(3) Notify law enforcement of possible identity theft; or
(4) Take other appropriate action to prevent or mitigate identity theft.
(Ord. 09-09, passed 4-20-09)
The City Council shall annually review and, as deemed necessary by the Council, 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 city and its covered accounts from identity theft. In doing so, the City Council shall consider the following factors and exercise its discretion in amending the program;
(A) The city’s experiences with identity theft;
(B) Updates in methods of identity theft;
(C) Updates in customary methods used to detect, prevent, and mitigate identity theft;
(D) Updates in the types of accounts that the city offers or maintains; and
(E) Updates in service provider arrangements.
(Ord. 09-09, passed 4-20-09)
The City Clerk is responsible for oversight of the program and for program implementation. The City Clerk 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 City Clerk, 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 City Council for consideration by the Council.
(A) The City Clerk will report to the Mayor at least annually on compliance with the red flag requirements.
(B) The City Clerk and Mayor are 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 City Clerk and the Mayor shall exercise their discretion in determining the amount and substance of training necessary.
(Ord. 09-09, passed 4-20-09)
In the event that the city engages a service provider to perform an activity in connection with one or more covered accounts, the City Clerk shall exercise his or her discretion in reviewing such arrangements in order to ensure, to the best of his or her ability, that the service provider’s activities are conducted in accordance with policies and procedures, agreed upon by contract, that are designed to detect any red flags that may arise in the performance of the service provider’s activities and take appropriate steps to prevent or mitigate identity theft.
(Ord. 09-09, passed 4-20-09)
In the event that the city receives a notice of address discrepancy, the city employee responsible for verifying consumer addresses for the purpose of providing the municipal service or account sought by the consumer shall perform one or more of the following activities, as determined to be appropriate by such employee:
(A) Compare the information in the consumer report with:
(1) Information the city obtains and uses to verify a consumer’s identity in accordance with the requirements of the Customer Information Program rules implementing 31 U.S.C. § 5318(l);
(2) Information the city maintains in its own records, such as applications for service, change of address notices, other customer account records or tax records; or
(3) Information the city obtains from third-party sources that are deemed reliable by the relevant city employee; or
(B) Verify the information in the consumer report with the consumer.
(Ord. 09-09, passed 4-20-09)
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