<div class="chunk-title">Sec. 40-11. - Identity theft protection program.</div>
<div class="chunk-content">
            <p class="incr0">
               (a)
               </p>
            		
            <p class="content1">
               <span class="ital">Program adoption.</span> This Identity Theft Prevention Program ("Program") is adopted pursuant to the Federal
               Trade Commission's Red Flags Rule ("Rule"), which implements Section 114 of the Fair
               and Accurate Credit Transactions Act of 2003. (16 C.F.R. Â§ 681.2.)
               </p>
            		
            <p class="incr0">
               (b)
               </p>
            		
            <p class="content1">
               <span class="ital">Definitions.</span>
               </p>
            		
            <p class="incr1">
               (1)
               </p>
            		
            <p class="content2">
               <span class="ital">County</span> means and refers to Craven County.
               </p>
            		
            <p class="incr1">
               (2)
               </p>
            		
            <p class="content2">
               <span class="ital">Covered account</span> means and refers to:
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               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, such as a credit card account, mortgage loan, automobile
               loan, margin account, cell phone account, utility account, checking account, or savings
               account; and
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               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.
               </p>
            		
            <p class="incr1">
               (3)
               </p>
            		
            <p class="content2">
               <span class="ital">Customer</span> means and refers to a person that has a covered account with the county.
               </p>
            		
            <p class="incr1">
               (4)
               </p>
            		
            <p class="content2">
               <span class="ital">Identifying information</span> means and shall be as defined under the rule, as amended from time to time. As of
               the effective date of this article, it means "any name or number that may be used,
               alone or in conjunction with any other information, to identify a specific person,"
               and shall include: 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.
               </p>
            		
            <p class="incr1">
               (5)
               </p>
            		
            <p class="content2">
               <span class="ital">Identity theft</span> means and refers to fraud committed using the identifying information of another
               person without authority.
               </p>
            		
            <p class="incr1">
               (6)
               </p>
            		
            <p class="content2">
               <span class="ital">Program administrator</span> means and refers to that person designated by the county board of commissioners for
               the administration and enforcement of this article, or his designee.
               </p>
            		
            <p class="incr1">
               (7)
               </p>
            		
            <p class="content2">
               <span class="ital">Red flag</span> means and refers to a pattern, practice, or specific activity that indicates the
               possible existence of identity theft.
               </p>
            		
            <p class="incr1">
               (8)
               </p>
            		
            <p class="content2">
               <span class="ital">Utility</span> means and refer to any board, commission, district, department, provider or other
               agency or department of county that provides any type of public utility service, or
               which is otherwise subject to the rule.
               </p>
            		
            <p class="incr1">
               (9)
               </p>
            		
            <p class="content2">
               <span class="ital">Service provider</span> means a person that provides service directly to the creditor.
               </p>
            		
            <p class="incr0">
               (c)
               </p>
            		
            <p class="content1">
               <span class="ital">Identification of red flags.</span> In order to identify relevant red flags, the utility considers the types of accounts
               that it offers and maintains, the methods it provides to open its accounts, the methods
               it provides to access its accounts, and its previous experiences with identity theft.
               The utility identifies the following red flags in each of the listed categories:
               </p>
            		
            <p class="incr1">
               (1)
               </p>
            		
            <p class="content2">
               <span class="ital">Notifications and warnings from credit reporting agencies.</span>
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               Report of fraud accompanying a credit report;
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               Notice or report from a credit agency of a credit freeze on a customer or applicant;
               </p>
            		
            <p class="incr2">
               c.
               </p>
            		
            <p class="content3">
               Notice or report from a credit agency of an active duty alert for an applicant; and
               </p>
            		
            <p class="incr2">
               d.
               </p>
            		
            <p class="content3">
               Indication from a credit report of activity that is inconsistent with a customer's
               usual pattern or activity.
               </p>
            		
            <p class="incr1">
               (2)
               </p>
            		
            <p class="content2">
               <span class="ital">Suspicious documents.</span>
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               Identification document or card that appears to be forged, altered or inauthentic;
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               Identification document or card on which a person's photograph or physical description
               is not consistent with the person presenting the document;
               </p>
            		
            <p class="incr2">
               c.
               </p>
            		
            <p class="content3">
               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
               </p>
            		
            <p class="incr2">
               d.
               </p>
            		
            <p class="content3">
               Application for service that appears to have been altered or forged.
               </p>
            		
            <p class="incr1">
               (3)
               </p>
            		
            <p class="content2">
               <span class="ital">Suspicious personal identifying information.</span>
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               Identifying information presented that is inconsistent with other information the
               customer provides (example: inconsistent birth dates);
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               Identifying information presented that is inconsistent with other sources of information
               (for instance, an address not matching an address on a credit report);
               </p>
            		
            <p class="incr2">
               c.
               </p>
            		
            <p class="content3">
               Identifying information presented that is the same as information shown on other applications
               that were found to be fraudulent;
               </p>
            		
            <p class="incr2">
               d.
               </p>
            		
            <p class="content3">
               Identifying information presented that is consistent with fraudulent activity (such
               as an invalid phone number or fictitious billing address);
               </p>
            		
            <p class="incr2">
               e.
               </p>
            		
            <p class="content3">
               Social Security number presented that is the same as one given by another customer;
               </p>
            		
            <p class="incr2">
               f.
               </p>
            		
            <p class="content3">
               An address or phone number presented that is the same as that of another person;
               </p>
            		
            <p class="incr2">
               g.
               </p>
            		
            <p class="content3">
               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
               </p>
            		
            <p class="incr2">
               h.
               </p>
            		
            <p class="content3">
               A person's identifying information is not consistent with the information that is
               on file for the customer.
               </p>
            		
            <p class="incr1">
               (4)
               </p>
            		
            <p class="content2">
               <span class="ital">Suspicious account activity or unusual use of account.</span>
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               Change of address for an account followed by a request to change the account holder's
               name;
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               Payments stop on an otherwise consistently up-to-date account;
               </p>
            		
            <p class="incr2">
               c.
               </p>
            		
            <p class="content3">
               Account used in a way that is not consistent with prior use (example: very high activity);
               </p>
            		
            <p class="incr2">
               d.
               </p>
            		
            <p class="content3">
               Mail sent to the account holder is repeatedly returned as undeliverable;
               </p>
            		
            <p class="incr2">
               e.
               </p>
            		
            <p class="content3">
               Notice to the utility that a customer is not receiving mail sent by the utility;
               </p>
            		
            <p class="incr2">
               f.
               </p>
            		
            <p class="content3">
               Notice to the utility that an account has unauthorized activity;
               </p>
            		
            <p class="incr2">
               g.
               </p>
            		
            <p class="content3">
               Breach in the utility's computer system security; and
               </p>
            		
            <p class="incr2">
               h.
               </p>
            		
            <p class="content3">
               Unauthorized access to or use of customer account information.
               </p>
            		
            <p class="incr1">
               (5)
               </p>
            		
            <p class="content2">
               <span class="ital">Alerts from others.</span>
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               Notice to the utility from a customer, identity theft victim, law enforcement or other
               person that it has opened or is maintaining a fraudulent account for a person engaged
               in identity theft.
               </p>
            		
            <p class="incr0">
               (d)
               </p>
            		
            <p class="content1">
               <span class="ital">Detecting red flags.</span>
               </p>
            		
            <p class="incr1">
               (1)
               </p>
            		
            <p class="content2">
               <span class="ital">New accounts.</span> In order to detect any of the red flags identified above associated with the opening
               of a new account, utility personnel will take the following steps to obtain and verify
               the identity of the person opening the account:
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               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;
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               Verify the customer's identity (for instance, review a driver's license or other photo
               identification card);
               </p>
            		
            <p class="incr2">
               c.
               </p>
            		
            <p class="content3">
               Review documentation showing the existence of a business entity; and
               </p>
            		
            <p class="incr2">
               d.
               </p>
            		
            <p class="content3">
               Independently contact the customer.
               </p>
            		
            <p class="incr1">
               (2)
               </p>
            		
            <p class="content2">
               <span class="ital">Existing accounts.</span> In order to detect any of the red flags identified above for an existing account,
               utility personnel will take the following steps to monitor transactions with an account:
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               Verify the identification of customers if they request information (in person, via
               telephone, via facsimile, via email);
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               Verify the validity of requests to change billing addresses; and
               </p>
            		
            <p class="incr2">
               c.
               </p>
            		
            <p class="content3">
               Verify changes in banking information given for billing and payment purposes.
               </p>
            		
            <p class="incr0">
               (e)
               </p>
            		
            <p class="content1">
               <span class="ital">Preventing and mitigating identity theft.</span> In the event utility 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:
               </p>
            		
            <p class="incr1">
               (1)
               </p>
            		
            <p class="content2">
               <span class="ital">Prevention and mitigation.</span>
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               Continue to monitor an account for evidence of identity theft;
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               Contact the customer;
               </p>
            		
            <p class="incr2">
               c.
               </p>
            		
            <p class="content3">
               Change any passwords or other security devices that permit access to accounts;
               </p>
            		
            <p class="incr2">
               d.
               </p>
            		
            <p class="content3">
               Not open a new account;
               </p>
            		
            <p class="incr2">
               e.
               </p>
            		
            <p class="content3">
               Close an existing account;
               </p>
            		
            <p class="incr2">
               f.
               </p>
            		
            <p class="content3">
               Reopen an account with a new number;
               </p>
            		
            <p class="incr2">
               g.
               </p>
            		
            <p class="content3">
               Notify the program administrator for determination of the appropriate step(s) to take;
               </p>
            		
            <p class="incr2">
               h.
               </p>
            		
            <p class="content3">
               Notify law enforcement; or
               </p>
            		
            <p class="incr2">
               i.
               </p>
            		
            <p class="content3">
               Determine that no response is warranted under the particular circumstances.
               </p>
            		
            <p class="incr1">
               (2)
               </p>
            		
            <p class="content2">
               <span class="ital">Protect customer identifying information.</span> In order to further prevent the likelihood of identity theft occurring with respect
               to utility accounts, the utility will take the following steps with respect to its
               internal operating procedures to protect customer identifying information:
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               If applicable, ensure that its website is secure or provide clear notice that the
               website is not secure;
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               Ensure complete and secure destruction of paper documents and computer files containing
               customer information;
               </p>
            		
            <p class="incr2">
               c.
               </p>
            		
            <p class="content3">
               Ensure that office computers are password protected and that computer screens lock
               after a set period of time;
               </p>
            		
            <p class="incr2">
               d.
               </p>
            		
            <p class="content3">
               Keep offices clear of papers containing customer information;
               </p>
            		
            <p class="incr2">
               e.
               </p>
            		
            <p class="content3">
               Request only the last four digits of Social Security numbers (if any);
               </p>
            		
            <p class="incr2">
               f.
               </p>
            		
            <p class="content3">
               Ensure computer virus protection is up to date;
               </p>
            		
            <p class="incr2">
               g.
               </p>
            		
            <p class="content3">
               Access to customer accounts shall be limited to county personnel only; and
               </p>
            		
            <p class="incr2">
               h.
               </p>
            		
            <p class="content3">
               Require and keep only the kinds of customer information that are necessary for utility
               purposes.
               </p>
            		
            <p class="incr0">
               (f)
               </p>
            		
            <p class="content1">
               <span class="ital">Program updates.</span> This program will be periodically reviewed and updated to reflect changes in risks
               to customers and the soundness of the utility from identity theft. At least once per
               year, the program administrator will consider the utility's experiences with identity
               theft situation, changes in identity theft methods, changes in identity theft detection
               and prevention methods, changes in types of accounts the utility maintains and changes
               in the utility's business arrangements with other entities. After considering these
               factors, the program administrator will determine whether changes to the program,
               including the listing of red flags, are warranted. Thereafter, he or she shall update
               the board of commissioners with his recommended changes, if any, and the board of
               commissioners will make a determination of whether to make any changes to the program.
               </p>
            		
            <p class="incr0">
               (g)
               </p>
            		
            <p class="content1">
               <span class="ital">Program administration.</span>
               </p>
            		
            <p class="incr1">
               (1)
               </p>
            		
            <p class="content2">
               <span class="ital">Oversight.</span> Responsibility for developing, implementing and updating this program lies with an
               identity theft committee for the utility ("committee"). The committee is headed by
               a program administrator who may be the head of the utility or his or her appointee.
               Two or more other individuals appointed by the head of the utility or the program
               administrator comprise the remainder of the committee membership. The program administrator
               will be responsible for the program administration, for ensuring appropriate training
               of utility staff on the program, 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 program.
               </p>
            		
            <p class="incr1">
               (2)
               </p>
            		
            <p class="content2">
               <span class="ital">Staff training and reports.</span> Utility staff responsible for implementing the program shall be trained either by
               or under the direction of the program administrator in the detection of red flags,
               and the responsive steps to be taken when a red flag is detected. The utility should
               include in its program how often training is to occur. Staff shall provide reports
               to the program administrator on incidents of identity theft, the utility's compliance
               with the program and the effectiveness of the program at least annually.
               </p>
            		
            <p class="b2">
               The reports should address material matters related to the program and evaluate issues
               such as: the effectiveness of the policies and procedures of the creditor in addressing
               the risk of identity theft in connection with the opening of covered accounts and
               with respect to existing covered accounts; service provider arrangements; significant
               incidents involving identity theft and management's response; and recommendations
               for material changes to the program.
               </p>
            <p class="incr1">
               (3)
               </p>
            		
            <p class="content2">
               <span class="ital">Service provider arrangements.</span> In the event the utility engages one or more service providers to perform an activity
               in connection with one or more accounts, the utility will take the following steps
               to ensure each service provider performs its activity in accordance with reasonable
               policies and procedures designed to detect, prevent, and mitigate the risk of identity
               theft:
               </p>
            		
            <p class="incr2">
               a.
               </p>
            		
            <p class="content3">
               Require, by contract, that service providers have such policies and procedures in
               place; and
               </p>
            		
            <p class="incr2">
               b.
               </p>
            		
            <p class="content3">
               Require, by contract, that service providers review the utility's program and report
               any red flags to the program administrator.
               </p>
            		
            <p class="incr1">
               (4)
               </p>
            		
            <p class="content2">
               <span class="ital">Specific program elements and confidentiality.</span> For the effectiveness of identity theft prevention programs, the red flag rule envisions
               a degree of confidentiality regarding the utility's specific practices relating to
               identity theft detection, prevention and mitigation. Therefore, under this program,
               knowledge of such specific practices are to be limited to the identity theft committee
               and those employees who need to know them for purposes of preventing identity theft.
               Because this program is to be adopted by a public body and thus publicly available,
               it would be counterproductive to list these specific practices here. Therefore, only
               the program's general red flag detection, implementation and prevention practices
               are listed in this document.
               </p>
            		
            <p class="incr0">
               (h)
               </p>
            		
            <p class="content1">
               <span class="ital">Severability; conflict with other laws.</span>
               </p>
            		
            <p class="incr1">
               (1)
               </p>
            		
            <p class="content2">
               <span class="ital">Severability.</span> If any section, clause or provision of this section shall be found to be invalid,
               the validity of the remaining sections, clauses or provisions shall not be affected
               thereby.
               </p>
            		
            <p class="incr1">
               (2)
               </p>
            		
            <p class="content2">
               <span class="ital">Conflict with other laws.</span> Whenever the regulations of this section conflict with the requirements of another
               statute, the more restrictive standard shall apply.
               </p>
            		
            <p class="historynote0">
               (<a class="ordinance-link" href="" data-product-id="14528" data-ordinance-id="1301605">Ord. of 7-1-2024</a>)
               </p></div>