R-39-09 Res. Identity Theft PolicyRESOLUTION R, 9 . Dt(
A RESOULTION ADOPTING AN IDENTITY THEFT POLICY
WHEREAS, the Fair and Accurate Credit Transactions Act of 2003, an amendment to the
Fair Credit Reporting Act, requires rules regarding identity theft protection to be promulgated; and
WHEREAS, those rules require fmancial institutions and creditors to develop and
implement written identity- theft- prevention programs; and
WHEREAS, the term "creditor" includes municipalities that provide services to customers
and, subsequently, bill for those services; and
WHEREAS, the Village of Lemont has determined that the following policy is in the best
interest of the municipality and its citizens.
NOW, THEREFORE BE IT RESOLVED by the Village President and Board of Trustees
of the Village of Lemont that the Identity Theft Policy is hereby approved, attached hereto as
exhibit A.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF LEMONT, COOK, WILL AND DU PAGE COUNTIES ILLINOIS
on this 7. Z nc4 Day of 01,-1 , 2009.
Debby Blatzer
Paul Chialdikas
Clifford Miklos
Rick Sniegowski
Ronald Stapleton
Jeanette Virgilio
Attest:
AYES NAYS PASSED ABSENT
V
V
1/
CHARLENE SMOLLEN, Village Clerk
Village of Lemont
SENSITIVE INFORMATION POLICY
AND IDENTITY THEFT PREVENTION PROGRAM
1. BACKGROUND
The risk to the company, its employees and customers from data loss and identity theft is
of significant concern to the company and can only be reduced through the combined
efforts of every employee and contractor.
2. PURPOSE
The company adopts this sensitive information policy to help protect employees,
customers, contractors and the company from damages related to loss or misuse of
sensitive information. This policy will:
• Define sensitive information
▪ Describe the physical security of data when it is printed on paper
• Describe the electronic security of data when stored and distributed
Putting the Identity Theft Prevention Program in place enables the company to protect
existing customers, reducing risk from identity fraud and minimize potential damage to the
company from fraudulent new accounts. The program will:
• Identify Red Flags that signify potentially fraudulent activity within new or existing
covered accounts
• Detect Red Flags when they occur in covered accounts
• Respond to Red Flags to determine if fraudulent activity has occurred and act if
fraud has been attempted or committed
• Update program periodically, including reviewing accounts that are covered and
Red Flags that are part of the program
3. SCOPE
This policy and protection program apply to employees, contractors, consultants,
temporaries, and other workers at the Village, including all personnel affiliated with third
parties.
4. POLICY
4.1. SENSITIVE INFORMATION POLICY
4.1.1. Definition of Sensitive Information
Sensitive information includes the following items whether stored in electronic or
printed format:
4.1.1.1. Personal Information - Sensitive information consists of
personal information including, but not limited to:
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4.1.1.1.1. Credit Card Information, including any of the following:
• Credit Card Number (in part or whole)
• Credit Card Expiration Date
• Cardholder Name
• Cardholder Address
4.1.1.1.2. Tax Identification Numbers, including:
• Social Security Number
■ Social Insurance Number
■ Business Identification Number
• Employer Identification Numbers
4.1.1.1.3. Payroll information, including, among other information:
• Paychecks
• Pay stubs
• Pay rates
4.1.1.1.4. Cafeteria Plan Check Requests and associated paperwork
4.1.1.1.5. Medical Information for any Employees or Customers, including
but not limited to:
• Doctor names and claims
• Insurance claims
• Prescriptions
• Any related personal medical information
4.1.1.1.6. Other Personal Information belonging to Customers, Employees
and Contractors, examples of which include:
• Date of Birth
• Address
• Phone Numbers
• Maiden Name
• Names
• Customer Number
4.1.1.2. Corporate Information- Sensitive corporate information includes, but is
not limited to:
4.1.1.2.1. Company, employee, customer, vendor, supplier confidential,
proprietary information or trade secrets.
4.1.1.2.2. Proprietary and /or confidential information, among other things,
includes: business methods, customer utilization information,
retention information, sales information, marketing and other
Company strategy, computer codes, screens, forms, information
about, or received from, Company's current, former and prospective
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customers, sales associates or suppliers or any other non - public
information. Proprietary and /or confidential information also includes
the name and identity of any customer or vendor and the specifics of
any relationship between and among them and the company.
4.1.1.3. Any document marked "Confidential," "Sensitive," "Proprietary," or any
document similarly labeled.
4.1.1.4. The company personnel are encouraged to use common sense
judgment in securing the company Confidential information to the proper
extent. If an employee is uncertain of the sensitivity of a particular piece of
information, he /she should contact their supervisor /manager.
4.1.2. Hard Copy Distribution
Every employee and contractor performing work for the company will comply with the
following policies:
4.1.2.1. File cabinets, desk drawers, overhead cabinets, and any other storage
space containing documents with sensitive information will be locked
when not in use.
4.1.2.2. Storage rooms containing documents with sensitive information and
record retention areas will be locked at the end of each workday.
4.1.2.3. Desks, workstations, work areas, printers and fax machines, and
common shared work areas will be cleared of all documents containing
sensitive information when not in use.
4.1.2.4. Whiteboards, dry-erase boards, writing tablets, etc. in common shared
work areas will be erased, removed, or shredded when not in use.
4.1.2.5. When documents containing sensitive information are discarded they
will be placed inside a locked shred bin or immediately shredded using a
mechanical cross cut or Department of Defense (DOD) approved
shredding device. Locked shred bins are labeled "Confidential paper
shredding and recycling ". If you need any assistance in locating one of
these bins, please contact a supervisor /manager.
4.1.3. Electronic Distribution
Every employee and contractor performing work for the company will comply with the
following policies:
4.1.3.1. Internally, sensitive information may be transmitted using approved
company email. All sensitive information must be encrypted when stored
in an electronic format.
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4.1.3.2. Any sensitive information sent external must be encrypted and
password protected and only to approved recipients. Additionally, a
statement such at this should be included in the email,
"This message may contain confidential and /or proprietary information, and is
intended for the person /entity to whom it was originally addressed. Any use by
others is strictly prohibited."
4.2. IDENTITY THEFT PREVENTION PROGRAM
4.2.1. Covered Accounts
Every new and existing customer account that meets the following criteria is
covered by this program
4.2.1.1. Business, personal and household accounts for which there is a
reasonably foreseeable risk of identity theft.
4.2.1.2. Business, personal and household accounts for which there is a
reasonably foreseeable risk to the safety and /or soundness of the
company from identity theft, including financial, operational, compliance,
reputation, or litigation risks.
4.2.2. Red Flags
The following `Red Flags' are potential indicators of fraud and any time when a Red
Flag, or a situation closely resembling a Red Flag, is apparent, it should be
investigated for verification.
4.2.2.1. Alerts, Notifications or Warnings from a Consumer Reporting Agency
4.2.2.1.1. A fraud or active duty alert is included with a consumer report.
4.2.2.1.2. A consumer reporting agency provides a notice of credit freeze in
response to a request for a consumer report.
4.2.2.1.3. A consumer reporting agency provides a notice of address
discrepancy, as defined in § 334.82(b) of this part.
4.2.2.1.4. A consumer report indicates a pattern of activity that is inconsistent
with the history and usual pattern of activity of an applicant or
customer, such as:
• A recent and significant increase in the volume of inquiries
• An unusual number of recently established credit relationships
■ A material change in the use of credit, especially with respect to
recently established credit relationships
• An account that was closed for cause or identified for abuse of
account privileges by a financial institution or creditor
4.2.2.2. Suspicious Documents
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4.2.2.2.1. Documents provided for identification appear to have been altered
or forged.
4.2.2.2.2. The photograph or physical description on the identification is not
consistent with the appearance of the applicant or customer
presenting the identification.
4.2.2.2.3. Other information on the identification is not consistent with
information provided by the person opening a new covered account
or customer presenting the identification.
4.2.2.2.4. Other information on the identification is not consistent with readily
accessible information that is on file with the financial institution or
creditor, such as a signature card or a recent check.
4.2.2.2.5. An application appears to have been altered or forged, or gives the
appearance of having been destroyed and reassembled.
4.2.2.3. Suspicious Personal Identifying Information
4.2.2.3.1. Personal identifying information provided is inconsistent when
compared against external information sources used by the financial
institution or creditor. For example:
• The address does not match any address in the consumer report
• The Social Security Number (SSN) has not been issued, or is listed on
the Social Security Administration's Death Master File
4.2.2.3.2. Personal identifying information provided by the customer is not
consistent with other personal identifying information provided by the
customer. For example, there is a lack of correlation between the
SSN range and date of birth.
4.2.2.3.3. Personal identifying information provided is associated with known
fraudulent activity as indicated by internal or third -party sources used
by the financial institution or creditor. For example:
■ The address on an application is the same as the address provided on
a fraudulent application
4.2.2.3.4. Personal identifying information provided is of a type commonly
associated with fraudulent activity as indicated by internal or third -
party sources used by the financial institution or creditor. For
example:
• The address on an application is fictitious, a mail drop, or prison
■ The phone number is invalid, or is associated with a pager or
answering service
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4.2.2.3.5. The SSN provided is the same as that submitted by other persons
opening an account or other customers.
4.2.2.3.6. The address or telephone number provided is the same as or
similar to the account number or telephone number submitted by an
unusually large number of other persons opening accounts or other
customers.
4.2.2.3.7. The person opening the covered account or the customer fails to
provide all required personal identifying information on an application
or in response to notification that the application is incomplete.
4.2.2.3.8. Personal identifying information provided is not consistent with
personal identifying information that is on file with the financial
institution or creditor.
4.2.2.3.9. For financial institutions and creditors that use challenge
questions, the person opening the covered account or the customer
cannot provide authenticating information beyond that which
generally would be available from a wallet or consumer report.
4.2.2.4. Unusual Use of, or Suspicious Activity Related to, the Covered
Account
4.2.2.4.1. Shortly following the notice of a change of address for a covered
account, the institution or creditor receives a request for new,
additional, or replacement cards or a cell phone, or for the addition of
authorized users on the account.
4.2.2.4.2. A new revolving credit account is used in a manner commonly
associated with known patterns of fraud patterns. For example:
• The majority of available credit is used for cash advances or
merchandise that is easily convertible to cash (e.g., electronics
equipment or jewelry)
• The customer fails to make the first payment or makes an initial
payment but no subsequent payments
4.2.2.4.3. A covered account is used in a manner that is not consistent with
established patterns of activity on the account. There is, for example:
• Nonpayment when there is no history of late or missed payments; A
material increase in the use of available credit
• A material change in purchasing or spending patterns
• A material change in electronic fund transfer patterns in connection
with a deposit account
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• A material change in telephone call patterns in connection with a
cellular phone account
4.2.2.4.4. A covered account that has been inactive for a reasonably lengthy
period of time is used (taking into consideration the type of account,
the expected pattern of usage and other relevant factors).
4.2.2.4.5. Mail sent to the customer is returned repeatedly as undeliverable
although transactions continue to be conducted in connection with the
customer's covered account.
4.2.2.4.6. The financial institution or creditor is notified that the customer is
not receiving paper account statements.
4.2.2.4.7. The financial institution or creditor is notified of unauthorized
charges or transactions in connection with a customer's covered
account.
4.2.2.5. Notice from Customers, Victims of Identity Theft, Law Enforcement
Authorities, or Other Persons Regarding Possible Identity Theft in
Connection with Covered Accounts Held by the Financial Institution or
Creditor
4.2.2.5.1. The financial institution or creditor is notified by a customer, a
victim of identity theft, a law enforcement authority, or any other
person that it has opened a fraudulent account for a person engaged
in identity theft.
4.2.3. Responding to Red Flags
Once potentially fraudulent activity is detected, it is essential to act quickly as a
rapid appropriate response can protect customers and the company from damages
and loss.
4.2.3.1. Once potentially fraudulent activity is detected, gather all related
documentation and write a description of the situation. Take this
information and present it to the Village Administrator for determination.
4.2.3.2. The Village Administrator, or designee, will complete additional
authentication to determine whether the attempted transaction was
fraudulent or authentic.
4.2.3.3. If a transaction is determined to be fraudulent, appropriate actions
must be taken immediately. Actions may include:
• Cancel the transaction
• Notify and cooperate with appropriate law enforcement
• Determine extent of liability to company
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Notify actual customer that fraud has been attempted
4.2.4. Periodic Updates to Plan
4.2.4.1. At periodic intervals established in the program, or as required, the
program will be re- evaluated to determine whether all aspects of the
program are up to date and applicable in the current business
environment.
4.2.4.2. Periodic reviews will include an assessment of which accounts are
covered by the program.
4.2.4.3. As part of the review, Red Flags may be revised, replaced or
eliminated. New Red Flags may also be appropriate.
4.2.4.4. Actions to take in the event that fraudulent activity is discovered may
also require revision to reduce damage to the company and its customers.
4.2.5. Program Administration
4.2.5.1. Involvement of Senior Management
4.2.5.1.1. The Identity Theft Prevention Program shall not be operated as an
extension to existing fraud prevention programs and its importance
warrants the highest level of attention.
4.2.5.1.2. The Identity Theft Prevention Program is the responsibility of the
Village. Approval of the initial plan must be appropriately
documented and maintained.
4.2.5.1.3. Operational responsibility of the program is delegated to the
Village Administrator, or any municipal employee, official, or
independent contractor the Village Administrator delegates
responsibility to. Approval of the initial plan must be appropriately
documented and maintained.
4.2.5.2. Staff Training
4.2.5.2.1. Staff training shall be conducted for all employees, contractors for
whom it is reasonably foreseeable that they may come into contact
with accounts or Personally Identifiable Information which may
constitute a risk to the company or its customers.
4.2.5.2.2. Staff members shall continue to receive training as required as
changes to the program are made to ensure maximum effectiveness
of the program.
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4.2.5.3. Oversight of Service Provider arrangements
4.2.5.3.1. It is the responsibility of the municipality to ensure that the
activities of all Service Providers are conducted in accordance with
reasonable policies and procedures designed to detect prevent, and
mitigate the risk of identity theft.
4.2.5.3.2. A Service Provider that maintains its own Identity Theft Prevention
Program, consistent with the guidance of the Red Flag Rules and
validated by appropriate due diligence, may be considered to be
meeting these requirements.
4.2.5.3.3. Any specific requirements should be specifically addressed in the
appropriate contract arrangements.
5. ROLES AND RESPONSIBILITIES
Management will have the responsibility to enforce this policy and ensure that it is followed
by employees and contractors. Additional responsibilities regarding the operation of the
Identity Theft Prevention Program are as outlined above or as listed in additional written
guidance.
6. DEFINITIONS
Encryption
Hard Copy
Service Provider
7. ENFORCEMENT
The translation of data into a secret code. Encryption is
the most effective way to achieve data security. To read
an encrypted file, you must have access to a secret key or
password that enables you to decrypt it. Unencrypted
data is called plain test.
A printout of data stored in a computer. It is considered
hard because it exists physically on paper, whereas a soft
copy exists only electronically.
Any person or entity that maintains, processes, or
otherwise is permitted access to customer information or
consumer information through the provision of services
directly to the company.
Any employee found to have violated this policy may be subject to disciplinary action, up to
and including termination of employment.
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