Red Flag Identity Theft Prevention Program (Procedure 1.6000)

Based on Board Policy number and Florida Statute:Effective Date:
F.S. 1001.64 F.S.; Policy 1.260 02/10

Purpose

To establish a Red Flag Identity Theft Prevention Program designed to detect, prevent, and mitigate identity theft in connection with a covered account and to provide for continued administration of the Program in compliance with the Fair and Accurate Credit Transactions (FACT) Act of 2003.

Definitions:

  1. Identity Theft- fraud committed or attempted using the identifying information of another person without that person’s authorization.
  2. Covered account-a consumer account that a creditor offers or maintains primarily for personal, family, or household purposes that involves or is designed to permit multiple payments or transactions. Covered accounts include, but are not limited to, credit/debit cards, loans, and unpaid or partially unpaid student accounts.
  3. Red Flag-a pattern, practice or specific activity that indicates the possible existence of identity theft.
  4. Creditor-any person or entity that defers payment for services rendered, such as an entity that bills at the end of the month for services rendered the previous month. A college could be considered a creditor by participating in Direct Lending programs, the Federal Family Education Loan Program, offering institutional loans to students, or offering a plan for payment of tuition throughout the semester, rather than requiring full payment at the beginning of the semester.

Procedure:

  1. The College’s Program shall include reasonable procedures and processes to:

    1. Identify relevant red flags for covered accounts and incorporate those red flags into the program.
    2. Detect red flags that have been incorporated in the program.
    3. Respond appropriately to any red flags that are detected to prevent and mitigate identity theft.
    4. Ensure the program is updated periodically to reflect changes in risks to customers and to the safety and soundness of the creditor from identity theft.
  2. Identification of Covered Accounts The College has identified the following types of accounts:

    1. Student Accounts
    2. Deferment of tuition payments
    3. Short term student loans
    4. Service provider financial aid refunds
  3. Administration of the Program

    1. The Vice President for Administrative Services shall be responsible for the development, implementation, oversight and continued administration of the Program.
    2. Appropriate staff will be trained, as necessary, to effectively implement and monitor the program.
    3. Appropriate and effective oversight of any external service provider shall be incorporated within the program.
  4. Categories of red flags: Examples of red flags included in the program are as follows:

    1. Alerts, notifications, or other warnings received from consumer reporting agencies or service providers.
    2. The presentation of suspicious documents or personal identifying information.
    3. The unusual use of, or other suspicious activity, related to a covered account.
    4. Notice from customers, victims of identity theft, law enforcement authorities, or other persons regarding possible identity theft in connection with covered accounts.
    5. Notices of address discrepancies
    6. Recent increases in the volume of new inquiries or patterns of activity that are inconsistent with prior history.
  5. Detection of red flags: The program shall address the detection of red flags in connection with the opening of covered accounts and existing covered accounts by:

    1. Obtaining identifying information about, and verifying the identity of a person opening a covered account.
    2. Authenticating customers, monitoring transactions, and verifying the validity of change of address requests in the case of existing covered accounts.
  6. Response to detected red flags: The program shall provide for appropriate responses to detected red flags to prevent and mitigate identity theft. The response shall be commensurate with the degree of risk posed. Appropriate responses may include:

    1. Monitor a covered account for evidence of identity theft.
    2. Contact the customer.
    3. Change any passwords, security codes or other security devices that permit access to a covered account.
    4. Reopen a covered account with a new account number.
    5. Close or place a hold on an existing covered account.
    6. Notify appropriate college officials or law enforcement.
    7. Determine no response is warranted under the particular circumstances.
  7. Update and Oversight of the program: The program shall be updated periodically to reflect changes in risks to customers or to the safety and soundness of the College from identity theft. Oversight of the program shall include:

    1. Assignment of specific responsibility for the implementation of the program.
    2. Review of any reports that may be developed by staff regarding compliance.
    3. Approval of material changes to the policy or procedure related to the program to address changing risks of identity theft.
    4. Taking steps to ensure the activity of any third party service provider engaged by the College has reasonable policies and procedures in place to detect, prevent, and mitigate the risk of identity theft in conjunction with the College’s covered accounts.
Recommended by Executive Staff Date 02/10
Approved: E. Ann McGee, President Date 02/10

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