(A) Short title. This policy shall be known as the Town of Yorktown Identity Theft Prevention Program ("Program").
(B) Purpose. The purpose of this Program is to comply with the Federal Trade Commission's Fair Credit Reporting Act, specifically the Identity Theft Rules and federal regulations promulgated at 16 C.F.R. Part 681 aimed at detecting, preventing, and mitigating identity theft by recognizing red flags in connection with the opening of a covered account or any existing covered account.
(C) Definitions. For purposes of this Program, the following definitions apply unless the context clearly indicates or requires a different meaning:
ACCOUNT. A continuing relationship established by a person with the town to obtain a product or service for personal, family, household, or business purposes. ACCOUNT includes:
(a) An extension of credit, such as the purpose of property or services involving a deferred payment; and
(b) A deposit account.
COVERED ACCOUNT.
(a) Any account that the town offers or maintains, primarily for personal, family, or household purposes, that involves or is designed to permit multiple payments or transactions; and
(b) Any other account the town offers or maintains for which there is a reasonably foreseeable risk to the account holder or to the safety and soundness of the town from identity theft, including financial, operational, compliance, reputation, or litigation risks.
CREDIT. The right granted by a creditor to a debtor to defer payment of debt or to incur debts and defer its payment or to purchase property or services and defer payment therefor.
CREDITOR.
(a) Any person who regularly extends, renews, or continues credit;
(b) Any person who regularly arranges for the extension, renewal, or continuation of credit; or
(c) Any assignee of an original creditor who participates in the decision to extend, renew, or continue credit;
(d) Includes utility companies and telecommunications companies.
CUSTOMER. A person that has a covered account with the town.
IDENTITY THEFT. A fraud committed or attempted using identifying information of another person without authority.
PERSON. A natural person, corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association.
PROGRAM. This Town of Yorktown Identity Theft Prevention Program.
RED FLAG. A pattern, practice, or specific activity that indicates the possible existence of identity theft.
SERVICE PROVIDER. A person that provides a service directly to the town.
TOWN. The Town of Yorktown, Indiana.
UTILITY DEPARTMENT. The Town of Yorktown Utility Department.
(D) Findings. As of the date of this Program, the town makes the following findings:
(1) The town is a creditor due to its provision for and maintenance of covered accounts for which payment is made in arrears.
(2) The town provides the following types of covered accounts:
(a) Water utility accounts;
(b) Sewer utility accounts;
(c) Trash utility accounts.
(3) The potential processes in which identity theft could occur include:
(a) Opening a new covered account;
(b) Restoring an existing covered account;
(c) Making payments on covered accounts;
(d) Providing account information and access in person or via the telephone or world wide web.
(E) Aspects of the Program. This Program shall include reasonable policies and procedures to:
(1) Identify relevant red flags and incorporate them into this Program;
(2) Detect red flags that have been incorporated into this Program;
(3) Respond appropriately to any red flags that are detected to prevent and mitigate identity theft; and
(4) Ensure that the Program is updated periodically to reflect changes and risks to the town's customers and to the safety and soundness of the town.
(F) Identifying red flags. The red flags listed in Exhibit A to Ordinance 644, incorporated by reference as if fully set forth herein, include, but are not limited to, the red flags that are most applicable to the town and its covered accounts. The following red flag categories are applicable to this Program:
(1) Alerts, notifications, or warnings from a consumer reporting agency;
(2) Suspicious documents;
(3) Suspicious personal identifying information;
(4) Unusual use of, or suspicious activity related to, the covered account; and
(5) Notice from customers, victims of identity theft, or other persons.
(G) Detecting red flags. Under this Program:
(1) 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.
(2) In order to facilitate detection of the red flags identified in division (F) and Exhibit A of this Program, appropriate staff will take the following steps to verify:
(a) The identity of a person opening a new covered account (e.g. driver's license, government issued ID, or multiple pieces of other identification); and
(b) The validity of requests for changes of billing address and verifying identification of customers before giving out any personal information for existing covered accounts.
(H) Response to red flag detection. Any employee that may suspect fraud or identity theft or detect a red flag will implement the following response(s) as applicable:
(1) All suspicious activity and detections of red flags shall be reported to the Utility Department Billing Office.
(2) Additional response(s) may include, but are not limited to:
(a) Asking the applicant for clarification or additional documentation;
(b) Notifying the Yorktown Police Department;
(c) Declining to open the account;
(d) Monitoring the account;
(e) Closing the account;
(f) Contacting the customer;
(g) Not attempting to collect on an account;
(h) Determining that no response is warranted under the particular circumstances when the detected red flag is resolved.
(I) Other/additional accounts. In the event the town or Utility Department staff detects red flags with respect to any other accounts of the town, an appropriate response to such red flags shall be implemented in accordance with this Program.
(J) Updating the Program. This Program shall be reviewed at least annually and updated when necessary to reflect changes and risks to customers and to the safety and soundness of the town. Upon review, consideration will be given to:
(1) The experiences of the Utility Department and town with identity theft;
(2) Changes in methods of identity theft;
(3) Changes in methods to detect, prevent, and mitigate identity theft, including additional relevant red flags;
(4) Changes in the types of covered accounts the town offers or maintains; and
(5) Changes in the business arrangements of the town including service provider arrangements.
(J) Program administration. This Program shall be administered in the following manner:
(1) This Program shall be initially approved by the Town Council of the Town of Yorktown, Indiana.
(2) The Utility Department shall be designated responsible for the oversight, development, implementation, and administration of the Program. The Utility Department shall annually report to the Town Council regarding compliance by the town with the red flag regulations found in 16 C.F.R. Part 861.
(3) The Utility Department shall train staff, as necessary, to effectively implement this Program.
(4) Legal counsel for the town may be contacted as necessary with respect to the requirements of this Program.
(5) When the town engages a service provider to perform an activity in connection with covered accounts, the town should take steps to ensure that the activity of the service provider is conducted in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of identity theft.
(Ord. 644, passed 7-27-2009)