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On January 1, 2008, The Federal Trade Commission, the Federal Bank Regulatory Agencies, and the National Credit Union Administration mandated that all affected institutions must comply with implementation of Section 114 of the Fair and Accurate Credit Transactions Act of 2003 (FACTA). The City of Henderson’s Department of Utility Services (DUS) maintains an Identity Theft Prevention Program pursuant to this regulation.
DUS Identity Theft Prevention Program Purpose
Sections 114 and 315 of FACTA, also known as the Red Flags Rule, require that all financial institutions and creditors that hold any customer transaction accounts offer basic, complimentary identity theft protection to all new and existing account holders within their portfolios. Affected institutions, including the City of Henderson’s Department of Utility Services, must provide for the identification, detection and response to patterns, practices, or specific activities- known as “Red Flags”- that could indicate identity theft.
Program Policies
The DUS Program consists of policies and procedures which:
1. Provide customers with alerts, notifications, or warnings of probable identity theft;
2. Notify customers of receipt of suspect documents and changes to personally identifying information, such as contact information and mailing addresses;
3. Notify customers of unusual use of, or suspicious activity relating to, a covered account;
4. Disclose notices from customers, victims of identity theft, law enforcement authorities, or other businesses about possible identity theft in connection with covered accounts.
Red Flags Rule Definitions (www.ftc.gov)
Identity Theft
“Fraud committed using the identifying information of another person”
Red Flag
“A pattern, practice, or specific activity that indicates the possible existence of identity theft”
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.”
Creditor
“To include 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.”
Covered Accounts
“1. An account primarily for personal, family or household purposes that involves or is designed to permit multiple payments or transactions; or
2. Any other account for which there is a reasonably foreseeable risk to customers or the safety and soundness of the financial institution or creditor from identity theft.”
(FAQ8137)
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