HomeMy WebLinkAbout2009-036-04/21/2009-APPROVING AND ADOPTING AN IDENTITY THEFT PREVENTION PROGRAM OF THE CITYS MUNICIPAL COURT FOR THE DET RESOLUTION 2009-036
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AND ADOPTING AN IDENTITY THEFT PREVENTION PROGRAM
OF THE CITY'S MUNICIPAL COURT FOR THE DETECTION, PREVENTION AND
MITIGATION OF IDENTITY THEFT
WHEREAS, the Fair and Accurate Credit Transactions Act of 2003 (the "Act") requires
several federal agencies including the Federal Trade Commission to establish guidelines for use
by creditors regarding identity theft prevention; and
WHEREAS, on November 9, 2007, the Federal Trade Commission published final rules,
set forth in 16 CFR Part 681, (the "Red Flags Rules") requiring that creditors create and
implement a program to address the detection, prevention and mitigation of identity theft; and
WHEREAS, the City's Municipal Court (the "Court") is a "creditor" and carries
"covered accounts" as those terms are defined in the Red Flags Rules when the Court extends
credit to defendants with misdemeanor violations who are unable to pay their fines at the time
that judgment is entered; and
WHEREAS, Court staff has prepared a program to address the detection, prevention and
mitigation of identity theft for the Court's covered accounts, which program is attached hereto as
Exhibit"A" (the "Identity Theft Program"), and the Court intends to implement such program in
compliance with the Red Flags Rules; and
WHEREAS, the Red Flags Rules require Court staff to obtain City Council approval of
the initial Identity Theft Program; and
WHEREAS, in Court staffs opinion, the Identity Theft Program meets the requirements
of the Red Flags Rules and equips the Court with the necessary guidance to continue its efforts
to detect, prevent and mitigate identity theft related to covered accounts and will hereafter be
available to the public in the office of the City Clerk.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT COLLINS that upon review and consideration of the Identity Theft Program, the City
Council hereby finds that such program is in the best interests of the City of Fort Collins and
hereby approves and adopts said program.
Passed and adopted at a regular meeting of the nc.. of the City of Fort ollins this
21 st day of April A.D. 2009.
Mayor
ATTEST:
City Clerk
EXHIBIT "A"
City of Fort Collins Municipal Court
Identity Theft Prevention Program
April, 2009
Purpose
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 Part 681 of Title 16 of the Code of Federal Regulations implementing
Sections 114 and 315 of the Fair and Accurate Credit Transactions Act(FACTA) of
2003.
Definitions
Identity theft means fraud committed or attempted using the identifying information of
another person without authority.
A covered account means:
1. An account that a financial institution or creditor offers or maintains,
primarily for personal, family, or household purposes that involves or is
designed to permit multiple payments or transactions. Covered accounts
include credit card accounts, mortgage loans, automobile loans, margin
accounts, cell phone accounts, utility accounts, checking accounts and savings
accounts; and
2. Any other account that the financial institution or creditor offers or maintains
for which there is a reasonably foreseeable risk to customers or to the safety
and soundness of the financial institution or creditor from identity theft,
including financial, operational, compliance, reputation or litigation risks.
A red flag means a pattern, practice or specific activity that indicates the possible
existence of identity theft.
The Program
The City of Fort Collins Municipal Court establishes an Identity Theft Prevention
Program to detect, prevent and mitigate identity theft. The Program shall include
reasonable policies and procedures to:
1. Identify relevant red flags for covered accounts it offers or maintains and
incorporate those red flags into the program;
2. Detect red flags that have been incorporated into the Program;
3. Respond appropriately to any red flags that are detected to prevent and
mitigate identity theft; and
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EXHIBIT "A"
4. Ensure the Program is updated periodically to reflect changes to risks to
customers and to the safety and soundness of the creditor from identity theft.
The program shall, as appropriate, incorporate existing policies and procedures that
control reasonably foreseeable risks.
Administration of the Program
1. The Municipal Court Supervisor shall be responsible for the development,
implementation, oversight and continued administration of the Program.
2. The Program shall train staff, as necessary, to effectively implement the
Program; and
3. The Program shall exercise appropriate and effective oversight of service
provider arrangements.
Identification of Relevant Red Flags
1. The Program shall include relevant red flags from the following categories as
appropriate:
a. Alerts, notifications, or other warnings received from consumer
reporting agencies or service providers, such as fraud detection
services;
b. The presentation of suspicious documents;
c. The presentation of suspicious personal identifying information;
d. The unusual use of, or other suspicious activity related to, a covered
account; and
e. Notice from customers, victims of identity theft, law enforcement
authorities, or other persons regarding possible identity theft in
connection with covered accounts.
2. The Program shall consider the following risk factors in identifying relevant
red flags for covered accounts as appropriate:
a. The types of covered accounts offered or maintained;
b. The methods provided to open covered accounts;
c. The methods provided to access covered accounts; and
d. Its previous experience with identity theft.
3. The Program shall incorporate relevant red flags from sources such as:
a. Incidents of identity theft previously experienced;
b. Methods of identity theft that reflect changes in risk; and
c. Applicable supervisory guidance.
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EXHIBIT "A"
Detection of Red Flags
The Program shall address the detection of red flags in connection with the opening of
covered accounts and existing covered accounts, such as by:
1. Obtaining identifying information about, and verifying the identity of, a
person opening a covered account; and
2. Authenticating customers, monitoring transactions, and verifying the validity
of change of address requests in the case of existing covered accounts.
Response
The Program shall provide for appropriate responses to detected red flags to prevent and
mitigate identity theft. The response shall be commensurate with the degree of risk
posed. Appropriate responses may include:
l: Monitor a covered account for evidence of identity theft;
2. Contact the customer;
3. Change any passwords, security codes or other security devices that permit
access to a covered account;
4. Reopen a covered account with a new account number;
5. Not open a new covered account;
6. Close an existing covered account;
7. Notify law enforcement; or
8. Determine no response is warranted under the particular circumstances.
Updating the Program
The Program shall be updated periodically to reflect changes in risks to customers or to
the safety and soundness of the court from identity theft based on factors such as:
1. The experiences of the court with identity theft;
2. Changes in methods of identity theft;
3. Changes in methods to detect, prevent and mitigate identity theft;
4. Changes in the types of accounts that the court offers and maintains.
Oversight of the Program
1. Oversight of the Program shall include:
a. Assignment of specific responsibility for implementation of the
Program;
b. Review of reports prepared by staff regarding compliance; and
c. Approval of material changes to the Program as necessary to address
changing risks of identity theft.
EXHIBIT "A"
2. Reports shall be prepared as follows:
a. Staff responsible for development, implementation and administration
of the Program shall report to the City Council at least annually on
compliance by the court with the Program.
b. The report shall address material matters related to the Program and
evaluate issues such as:
i. The effectiveness of the policies and procedures in addressing
the risk of identity theft in connection with the opening of
covered accounts and with respect to existing covered
accounts;
ii. Service provider agreements;
iii. Significant incidents involving identity theft and management's
response; and
iv. Recommendations for material changes to the Program.
Oversight of Service Provider Arrangements
The court shall take steps to ensure that the activity of a service provider is conducted in
accordance with reasonable policies and procedures designed to detect, prevent and
mitigate the risk of identity theft whenever the court engages a service provider to
perform an activity in connection with one or more covered accounts.
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