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R-1028 - 10/28/2008 - GOVERNMENT LEGISLATION FEDERAL - ResolutionsRESOLUTION 2008 -GL- FED - FIN -R -1028 A RESOLUTION ADOPTING AND IMPLEMENTING AN IDENTITY THEFT PREVENTION POLICY WITHIN THE VILLAGE OF OAK BROOK, COOK AND DUPAGE COUNTIES, ILLINOIS WHEREAS, pursuant to the Fair and Accurate Credit Transactions Act of 2003, the Federal Trade Commission adopted Identity Theft Rules requiring the creation of certain policies relating to the prevention and mitigation of identity theft (the "FTC Regulations "); and WHEREAS, the FTC Regulations require creditors to adopt red flag policies to identify, detect, prevent and mitigate such identity theft with respect to information used in covered accounts; and WHEREAS, the Village of Oak Brook (the "Village ") is a creditor, with respect to the FTC Regulations, by virtue of providing utility services and by providing services to citizens and accepting multiple payments for such services in arrears; and WHEREAS, pursuant to the FTC Regulations, such an arrangement between the Village and its citizens constitutes a covered account; and WHEREAS, the President and the Board of Trustees, after due consideration, find and determine that it is in the best interests of the health, safety and welfare of its residents to approve and adopt red flag policies to identify, detect, prevent and mitigate identity theft with respect to information used in covered accounts. NOW, THEREFORE, BE IT RESOLVED by the President and the Board of Trustees of the Village of Oak Brook, Cook and DuPage Counties, Illinois, as follows: Section 1. Incorporation. That the recitals set forth above are incorporated herein and made a part hereof. Section 2. Identity Theft Prevention Policy. The Village adopts this Identity Theft Prevention Policy, identified herein, in order to 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 such identity theft. Section 3. Definitions. For the purposes of this policy, the following words and phrases shall have the following meanings when used herein: RESOLUTION 2008 -GL- FED - FIN -R -1028 Resolution Adopting & Implementing Identity Theft Prevention Policy Page 2 of 6 a. "Covered Account" means i) an account the Village offers or maintains primarily for personal, family or household purposes that involves multiple payments or transactions; and ii) any other account the Village offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the Village from Identity Theft. b. Identity Theft" means fraud committed using Identifying Information of another person. c. "Identifying Information" means any name or number that may be used alone or in conjunction with any other information, to identify a specific person, including but not limited to: name, address, telephone number, social security number, date of birth, government issued driver's license, employer or taxpayer identification number, credit card account information, debit card information, and bank account information. d. "Policy" means the Identity Theft Prevention Policy, identified herein. e. "Red Flag" means a pattern, practice, or specific activity that indicates the possible existence of identity theft. f. "Village" means the Village of Oak Brook. Section 4. Identification of Red Flags. In order to identify relevant Red Flags, the Village considers the types of covered accounts that it offers and maintains, the methods it provides to open such covered accounts, the methods it provides to access such covered accounts, and its previous experiences with Identity Theft. The Village identifies the following Red Flags, in each of the listed categories: a. Notifications and Warnings From Credit Report Agencies. 1. Report of fraud accompanying a credit report; 2. Notice or report from a credit agency of a credit freeze on a customer or applicant; 3. Notice or report from a credit agency of an active duty alert for an applicant; and 4. Indication from a credit report of activity that is inconsistent with a customer's usual pattern or activity. b. Suspicious Documents. 1. Identification document or card that appears to be forged, altered or inauthentic; 2. Identification document or card on which a person's photograph or physical description is not consistent with the person presenting the document; 3. Other document with information that is not consistent with existing customer information (such as if a person's signature on a check appears forged); and 4. Application for service that appears to have been altered or forged. c. Suspicious Personal Identifying Information. 2 RESOLUTION 2008 -GL- FED - FIN -R -1028 Resolution Adopting & Implementing Identity Theft Prevention Policy Page 3 of 6 1. Identifying information presented that is inconsistent with other information the customer provides (example: inconsistent birth dates); 2. Identifying information presented that is inconsistent with other sources of information (for instance, an address not matching an address on a credit report); 3. Identifying information presented that is the same as information shown on other applications that were found to be fraudulent; 4. Identifying information presented that is consistent with fraudulent activity (such as an invalid phone number or fictitious billing address); 5. Social security number presented that is the same as one given by another customer; 6. An address or phone number presented that is the same as that of another person; 7. A person fails to provide complete personal identifying information on an application when reminded to do so (however, by law social security numbers must not be required); and 8. A person's identifying information is not consistent with the information that is on file for the customer. d. Suspicious Account Activity or Unusual Use of Covered Accounts. 1. Change of address for a covered account followed by a request to change the covered account holder's name; 2. Payments stop on an otherwise consistently up -to -date covered account; 3. Covered account used in a way that is not consistent with prior use (example: very high activity); 4. Mail sent to the covered account holder is repeatedly returned as undeliverable; 5. Notice to the Village that a customer is not receiving mail sent by the City; 6. Notice to the Village that a covered account has unauthorized activity; 7. Breach in the Village's computer system security; and 8. Unauthorized access to or use of identifying information. e. Alerts from Others. 1. Notice to the Village from a customer, identity theft victim, law enforcement or other person that it has opened or is maintaining a fraudulent covered account for a person engaged in Identity Theft. Section 5. Detecting Red Flags. a. New Covered Accounts. In order to detect any of the Red Flags identified in Section 4 associated with the opening of a new covered account, Village personnel will take the following steps to obtain and verify the identity of the person opening the account: 3 RESOLUTION 2008 -GL- FED - FIN -R -1028 Resolution Adopting & Implementing Identity Theft Prevention Policy Page 4 of 6 1. Require certain identifying information such as name, date of birth, residential or business address, principal place of business for an entity, driver's license or other identification; 2. Verify the customer's identity (for instance, review a driver's license or other identification card); 3. Review documentation showing the existence of a business entity; and 4. Independently contact the customer. b. Existing Covered Accounts. In order to detect any of the Red Flags identified in Section 4 for an existing covered account, Village personnel will take the following steps to monitor transactions with an account: 1. Verify the identification of customers if they request information (in person, via telephone, via facsimile, via email); 2. Verify the validity of requests to change billing addresses; and 3. Verify changes in banking information given for billing & payment purposes. Section 6. Preventing and Mitigating Identity Theft. In the event Village personnel detect any identified Red Flags, such personnel shall take one or more of the following steps, depending on the degree of risk posed by the Red Flag: 1. Continue to monitor a covered account for evidence of Identity Theft; 2. Contact the customer; 3. Change any passwords or other security devices that permit access to covered accounts; 4. Not open a new covered account; 5. Close an existing covered account; 6. Reopen a covered account with a new number; 7. Notify the Finance Director for determination of the appropriate step(s) to take; 8. Notify law enforcement; or 9. Determine that no response is warranted under the particular circumstances. Section 7. Protecting Customer Identifying Information. In order to further prevent the likelihood of Identity Theft occurring with respect to Village covered accounts, the Village will take the following steps with respect to its internal operating procedures to protect customer identifying information: 1. Ensure that its website is secure or provide clear notice that the website is not secure; 11 RESOLUTION 2008 -GL- FED - FIN -R -1028 Resolution Adopting & Implementing Identity Theft Prevention Policy Page 5 of 6 2. Ensure complete and secure destruction of paper documents and computer files containing customer information; 3. Ensure that office computers are password protected and that computer screens lock after a set period of time; 4. Ensure storage rooms, cabinets, drawers, and other storage space containing identifying information will be locked when not in use; 5. Keep offices clear of papers containing customer information; 6. Request only the last 4 digits of social security numbers (if any); 7. Ensure computer virus protection is up to date; and 8. Require and keep only the kinds of customer information that are necessary for utility purposes. Section 8. Program Updates. The Finance Director will periodically review and update this Policy to reflect changes in risks to customers and the soundness of the Village from Identity Theft. In doing so, the Finance Director will consider the Village's experiences with Identity Theft situations, changes in Identity Theft methods, changes in Identity Theft detection and prevention methods, and changes in the Village's business arrangements with other entities. After considering these factors, the Finance Director will determine whether changes to the Policy, including the listing of Red Flags, are warranted. If warranted, the Finance Director will present his or her recommended changes to the President and Board of Trustees, which will make a determination of whether to accept, modify or reject those changes to the Policy. Section 9. Policy Administration. Responsibility for developing, implementing and updating this Policy lies with the Finance Director, subject to approval by the President and Board of Trustees. The Finance Director will be responsible for the Policy administration, for ensuring appropriate training of Village staff on the Policy, for reviewing any staff reports regarding the detection of Red Flags and the steps for preventing and mitigating Identity Theft, determining which steps of prevention and mitigation should be taken in particular circumstances and considering periodic changes to the Policy. a. Staff Training and Reports. Village personnel responsible for implementing the Policy shall be trained either by or under the direction of the Finance Director in the detection of Red Flags, and the responsive steps to be taken when a Red Flag is detected. b. Service Provider Arrangements. In the event the Village engages a service provider to perform an activity in connection with one or more accounts, the Village will take the following 5 RESOLUTION 2008 -GL- FED - FIN -R -1028 Resolution Adopting & Implementing Identity Theft Prevention Policy Page 6 of 6 steps to ensure the service provider performs its activity in accordance with the Policy set forth herein: 1. Require, by contract, that service providers have such policies and procedures in place; and 2. Require, by contract, that service providers review the Village's Policy and report any Red Flags to the Finance Director. SECTION 10: If any section, paragraph, clause or provision of this resolution shall be held invalid, the invalidity thereof shall not affect any of the other provisions of this resolution. conflict. SECTION 11: All resolutions in conflict herewith are hereby repealed to the extent of such SECTION 12: This resolution shall be in full force and effect from and after its passage, approval and publication as provided by law. APPROVED THIS 28th day of October, 2008. 16 W. Craig age President PASSED THIS 28th day of October, 2008 Ayes: Trustees Carson, Kennedy, Manofsky, Sanford and Wolin Nays: None Absent: Trustee Saived ��� 4''~ `r'� '• °'.•rte'` „' r`; %j Cf •A* Se.0 �`' .� r7 \� EiT`�ir,' ATTEST: Charlotte K. Pruss Village Clerk 6