4.1 ERMUSR 11-12-2019 - Laserfiche WebLink

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Elk River -�-� Municipal Utilities A.12—Identity Theft Prevention Program— Red Flags Rule 1.0 Program Adoption A. The Elk River Municipal Utilities ("Utility") developed this Identity Theft Prevention Program ("Program) 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. § 681.2. This Program was developed with oversight and approval of the Program Administrator (defined below). After consideration of the size and complexity of the Utility's operations and account systems, and the nature and scope of the Utility's activities, the Program Administrator determined that this Program was appropriate for the Elk River Municipal Utilities and therefore presented it to the Elk River Municipal Utilities Commission for approval of this Program on October 14, 2008. 2.0 Program Purpose and Definitions A. Fulfilling requirements of the Red Flags Rule Under the Red Flag Rule, every financial institution and creditor is required to establish an"Identity Theft Prevention program"tailored to its size, complexity and the nature of its operation. Each program must contain reasonable policies and procedures to: 1. Identify relevant Red Flags for new and existing covered accounts 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 4. Ensure the Program is updated periodically,to reflect changes in risks to customers or to the safety and the soundness of the creditor from Identity Theft. B. Red Flags Rule definitions used in this Program The Red Flags Rule defines "Identity Theft"as "fraud committed or attempted using the identifying information of another person without authority" and a"Red Flag" as 111