(A) Establish an identity theft prevention program. To establish 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 16 CFR Part 681 implementing §§ 114 and 315 of the Fair and Accurate Credit Transactions Act (FACTA) of 2003.
(B) Establishing and fulfilling requirements of the red flags rule.
(1) The red flags rule (“rule”) defines IDENTITY THEFT as “fraud committed using the identifying information of another person” and a RED FLAG (“red flag”) as a pattern, practice, or specific activity that indicates the possible existence of identity theft.
(2) Under the rule, every financial institution and creditor is required to establish an “identity theft prevention program” tailored to its size, complexity and the nature of its operation. The program must contain reasonable policies and procedures to:
(a) Identify relevant red flags for new and existing covered accounts and incorporate those red flags into the program;
(b) Detect red flags that have been incorporated into the program;
(c) Respond appropriately to any red flags that are detected to prevent and mitigate identity theft; and
(d) 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.
(C) Red flags rule definitions used in this program. For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CITY. The City of Wake Village, Texas.
COVERED ACCOUNT.
(a) Any 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.
CREDITORS. Includes 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. 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.
PROGRAM. The Identity Theft Prevention Program for the city.
PROGRAM ADMINISTRATOR. The City Administrator is the Program Administrator for the Program.
UTILITY. The Utility is the Utility Department for the city.
(Ord. 08-09, passed 7-13-2009)