Area communities adopt identity theft program
May 06. 2009 6:00AM
By Alan Van Ormer Tribune editor
Area communities are adopting resolutions to come into compliance with a federal regulation requiring communities that provide utility services to have an identity theft program. The resolution is a formality for the communities of Baltic and Dell Rapids. According to city officials, their communities already protect the city’s customers identity through a variety of steps including not asking for social security numbers and putting in place security measures that make it difficult for those who might try to steal an identity. The city of Dell Rapids will not change the way it does business with its water and sewer customers after adopting an identity theft compliance resolution, according to Dell Rapids City Administrator S. L. Martin. “There is not a great difference unless we sense there might be a problem,” Martin said. “So far our system has not been broken, but we need to comply with federal standards and make a good faith effort to comply in the future.” Baltic Finance Officer Elaine Hendrickson said this may be necessary in larger communities. “But here I know everyone that walks in my door,” she said. “The new people setting up an account have not objected to giving me the necessary information to start an account.” Hendrickson said the new program will not change the way the city does business with their water and sewer accounts. “If the federal government did a compliance check, the city could show their documentation,” she said. One section of the Fair and Accurate Credit Transactions Act of 2003 requires all municipalities that operate utilities to develop an Identity Theft Prevention Program. The identity theft program does not need to be submitted to or reviewed by the Federal Trade Commission. However, the FTC could do random compliance reviews of utilities to ensure that the program is in place. Someone without a program could be fined $2,500 per incident. The original compliance date was November 2008, but that was extended to May 1, 2009. The Dell Rapids City Council adopted a five-page policy guide at its April 20 meeting to comply with the Federal standards for identity theft protection. The Baltic City Council adopted its resolution in October 2008. The identity theft program was actually approved the next month. Martin said the new program stresses being more aware of potential problems. He also said at this time there would be no added costs or added time working with customers under the identity theft compliance program. “However, if we expanded the program there could be extra costs, extra hours and delays for customers if we have to provide credit checks,” he said. “At this point, there are no plans to expand the identity theft program. However, we are working toward being flexible enough to respond to any new challenges in the future.”
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