Wednesday, January 28, 2009
Federal Trade Comissions "Red Flag Rules"
I have worked closely with Jean McDonald, our office manager in deciding what rules and procedures we needed. A template was provided by Habitat for Humanity International, Inc. and the majority of it did not apply to our small organization.
We only build one house a year and we have never had a problem with anyone who should not have participant information getting it.
If you come from a small town or a tight knit community like Fort Valley, then you know how the place works. For those of you who do not have experience with small town life, well everyone knows everyone and our office manager knows who is suppose to have what and who isn't!
With that being said, Jean and I decided to go with the full template sent to us for the "Red Flag Rules" just in case our organization grows and we need some of the components that do not apply right now.
I have included the template below in the event that anyone would like to look at it to get an idea of what the Federal Trade Commission (FTC) means by "Red Flag Rules".
I hope that this will help anyone looking for an explanation of what should and shouldn't be included in the rules. If you should have any questions, please email me at firstname.lastname@example.org.
FACT Act Identity Theft Red Flag Rules
Peach Area Habitat for Humanity, Inc.
To implement a program that formulates guidelines to maintain an identity theft program in accordance with the Federal Trade Commission (FTC) and Fair and Accurate Credit Transactions Act (FACTA); and using these guidelines that are appropriate to provide a policy and procedures that meet the requirements of the final rules.
Identity Theft: A fraud that is committed or attempted using a person’s identifying information with authority.
Covered Accounts: Accounts that are used primarily for personal, family, household or business purposes that involved or are designed to permit multiple payments or transactions. Any account where there is a reasonably foreseeable risk to members or the safety and soundness of Peach Area Habitat for Humanity, Inc. Covered Accounts included, but is not limited to, mortgage loans.
The Peach Area Habitat for Humanity, Inc. Board of Directors will approve the written program and approve any material changes; Agnes Stewart, President of The Peach Area Habitat for Humanity, Inc. Board of Directors, a senior management employee, will oversee the development, implementation and administration, ensuring that staff are trained and oversee service provider arrangements.
Administration methods for the program will include:
•Training staff members on specific responsibility for the program.
•Prepare and deliver to the board of directors an annual report regarding compliance with Red Flag rules. This report will address the issues and matters of:
o Effectiveness of the policies and procedures that address the risk of identity theft in connection with the opening of covered accounts or existing covered accounts, service provider arrangements.
o Significant incidents of identity theft and response to such incidents.
o Recommendations to improve and update program.
•Providing guidance for the board of directors to approve material changes to the program.
If service providers are used in connections with covered accounts, Peach Area Habitat for Humanity, Inc. will ensure that the activities of service providers are conducted pursuant to reasonable policies and procedures that comply with the rules.
Peach Area Habitat for Humanity, Inc. will implement procedures to:
•Identify relevant red flags for covered accounts
•Detect red flags
•Respond appropriately to red flags to prevent and mitigate identity theft in connection with the opening of certain accounts or certain existing accounts.
•Ensure policy and procedures are updated periodically to reflect changes in risks to members and Peach Area Habitat for Humanity, Inc.
Peach Area Habitat for Humanity, Inc. will identify relevant red flags and conduct a risk assessment that includes—financial, operations, compliance, reputation, and litigation; and determine whether it offers or maintains covered accounts taking into consideration:
•Types of covered accounts offered or maintained
•Methods provided to open accounts
•Methods provided to access accounts
•Previous experiences with identity theft
•Methods used to reflect changes in identity theft
Peach Habitat for Humanity, Inc. will address the detection of red flags: (1) by obtaining identifying information about and verifying the identity of the partner family members, (2) monitoring monthly mortgage payments, and (3) verifying the validity of change of address requests.
Possible sources used for detecting red flags include:
•Alerts, notifications or other warnings received from consumer reporting agencies or service providers, such as fraud detection services
•Presentation of suspicious or altered documents
•Presentation of suspicious, inconsistent or altered personal identifying information such as a suspicious address change
•Attempts to access an account by unauthorized users
•Unusual use of or other suspicious activity related to a covered account
•Notice from members, victims of identity theft, law enforcement authorities or other persons regarding possible identity theft in connection with covered accounts
Response Program: Peach Area Habitat for Humanity, Inc. will provide appropriate responses for preventing and mitigating identity theft. These responses will consider factors that may heighten the risk such as a data security breach; notification that a partner family member has provided account information to someone claiming to represent Peach Habitat for Humanity, Inc.; has provided information on a fraudulent website. These responses may include:
•Monitoring a covered account for evidence of identity theft
•Contacting the partner family
•Changing any passwords, security codes, or other security device that permit access to a covered account
•Reopening a covered account with a new account number
•Not opening a new covered account
•Closing an existing covered account
•Not attempting to collect on a covered account or not selling a covering account to a debt collector
•Notifying law enforcement
•Determining that no response is warranted under the particular circumstances
Updates: The policy and procedures will be updated periodically to reflect and respond to:
•Experiences with identity theft
•Changes in methods of identity theft
•Changes in methods to detect, prevent, and mitigate identity theft
•Changes in the business arrangements of Peach Area Habitat for Humanity, Inc. including mergers, acquisitions, alliances, joint ventures, and service provider arrangements
One of my favorite poems by my favorite General!
THROUGH A GLASS, DARKLY by Gen. George S. Patton, Jr.
Through the travail of the ages, Midst the pomp and toil of war, Have I fought and strove and perished Countless times upon this star.
In the form of many people In all panoplies of time Have I seen the luring vision Of the Victory Maid, sublime.
I have battled for fresh mammoth, I have warred for pastures new, I have listed to the whispers When the race trek instinct grew.
I have known the call to battle In each changeless changing shape From the high souled voice of conscience To the beastly lust for rape.
I have sinned and I have suffered, Played the hero and the knave; Fought for belly, shame, or country, And for each have found a grave.
I cannot name my battles For the visions are not clear, Yet, I see the twisted faces And I feel the rending spear.
Perhaps I stabbed our Savior In His sacred helpless side. Yet, I've called His name in blessing When after times I died.
In the dimness of the shadows Where we hairy heathens warred, I can taste in thought the lifeblood; We used teeth before the sword.
While in later clearer vision I can sense the coppery sweat, Feel the pikes grow wet and slippery When our Phalanx, Cyrus met.
Hear the rattle of the harness Where the Persian darts bounced clear, See their chariots wheel in panic From the Hoplite's leveled spear.
See the goal grow monthly longer, Reaching for the walls of Tyre. Hear the crash of tons of granite, Smell the quenchless eastern fire.
Still more clearly as a Roman, Can I see the Legion close, As our third rank moved in forward And the short sword found our foes.
Once again I feel the anguish Of that blistering treeless plain When the Parthian showered death bolts, And our discipline was in vain.
I remember all the suffering Of those arrows in my neck. Yet, I stabbed a grinning savage As I died upon my back.
Once again I smell the heat sparks When my Flemish plate gave way And the lance ripped through my entrails As on Crecy's field I lay.
In the windless, blinding stillness Of the glittering tropic sea I can see the bubbles rising Where we set the captives free.
Midst the spume of half a tempest I have heard the bulwarks go When the crashing, point blank round shot Sent destruction to our foe.
I have fought with gun and cutlass On the red and slippery deck With all Hell aflame within me And a rope around my neck.
And still later as a General Have I galloped with Murat When we laughed at death and numbers Trusting in the Emperor's Star.
Till at last our star faded, And we shouted to our doom Where the sunken road of Ohein Closed us in it's quivering gloom.
So but now with Tanks a'clatter Have I waddled on the foe Belching death at twenty paces, By the star shell's ghastly glow.
So as through a glass, and darkly The age long strife I see Where I fought in many guises, Many names, but always me.
And I see not in my blindness What the objects were I wrought, But as God rules o'er our bickerings It was through His will I fought.
So forever in the future, Shall I battle as of yore, Dying to be born a fighter, But to die again, once more.