Red Flags Rule and Identity Theft Prevention

3-0540, Administration and Finance 

October 2019

 

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Introduction 

1.01 

Oklahoma State University (OSU) developed this Identity Theft Prevention Program (Program) pursuant to the Federal Trade Commission’s (FTC) Red Flags Rule (Rule), which implements Section 114 of the Fair and Accurate Credit Transactions Act of 2003, 16 C.F.R § 681.2. After consideration of the size and complexity of the University’s operations and account systems, and the nature and scope of the University’s activities, the University determined this policy to be appropriate and necessary for University compliance.

 

Background

2.01 

Under the Rule, every financial institution and creditor (universities receiving certain federal grants as well as delaying payments and/or issuing debit cards must comply with these rules) is required to establish an Identity Theft Prevention Program tailored to the size, complexity, and nature of its operation.

 

Scope 

3.01 

OSU is committed to supporting the intent of the Red Flags Rule and understands the importance to its constituents. Protecting individual privacy and the University from data loss and from identity theft is essential.

 

Purpose 

4.01 

The University strives to make reasonable efforts to detect, prevent, and mitigate identity theft. This policy and procedure is intended to help protect students, faculty, staff, and other constituents and the University from damages related to the fraudulent activity of identity theft. It is not intended to specify all the details of the Program or identify all possible instances for identity theft. This policy and procedure requires departments to maintain written procedures, identify specific “Red Flags,” outline appropriate responses to “Red Flags” detected to mitigate identity theft, and establishes recommended employee training. This policy and procedure will be periodically reviewed by the University’s Identity Theft Committee (Committee), chaired by the Senior Vice President of Administration and Finance’s designee, and will be updated to reflect changes in risks to faculty, staff, students, and affiliates at the University with respect to Red Flags and identity theft.

 

Identity Theft Program Adoption

5.01 

Each University entity with access to personal identification and financial information is required to develop and implement reasonable internal written procedures to comply with the Red Flags Rule as well as other privacy requirements (e.g.; Gramm-Leach-Bliley, FERPA, HIPAA etc.). Departmental policies will be subject to audits. The policies will identify red flags, ensure procedures are in place to prevent and detect opportunities, and determine a response to identity theft occurrences.

 

Definitions (As Defined in the Act)

6.01 

Definitions

1. “Covered Account” includes all bursar accounts or loans administered by the University. Additionally, it includes any other account for which there is a reasonably foreseeable risk of identity theft.
2. “Identifying Information” is any name or number used alone or in conjunction with any other information, to identify a specific person, including: 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, student identification number, computer’s Internet Protocol address, or routing code.
3. “Identity Theft” is a fraud committed or attempted using the identifying information of another person without authority.
4. “Program Administrator” is the individual designated with primary responsibility for oversight of the Program. See Section 9.01.
5. “Red Flag” is a pattern, practice, or specific activity indicating the possible existence of Identity Theft.

Identification of Red Flags 

7.01

In order to identify relevant Red Flags, the University considers the types of accounts it offers and maintains, methods it provides to open its accounts, methods it provides to access its accounts, and its previous experiences with identity theft. The University identifies the following specific Red Flags in each of the listed categories (individual departmental policies may contain additional Red Flags specific to their area):

 

Notifications and Warnings from Credit Reporting Agencies Red Flags

• Report of fraud accompanying a credit report;
• Notice or report from a credit agency of a credit freeze on an applicant;
• Notice or report from a credit agency of an active duty alert for an applicant;
• Receipt of a notice of address discrepancy in response to a credit report request; or
• Indication from a credit report of activity inconsistent with an applicant’s usual pattern or activity.

 Suspicious Documents Red Flags

• Identification document or card appearing to be forged, altered, or inauthentic;
• Identification document or card on which a person’s photograph or physical description is not consistent with the person presenting the document;
• Other document with information not consistent with existing account holder/student information; or
• Application for service appearing to have been altered or forged.

Suspicious Personal Identifying Information Red Flags

• Identifying information presented inconsistent with other information the account holder/student provides (example: inconsistent birth date);
• Identifying information presented inconsistent with other sources of information (for instance, a permanent address not matching a permanent address on a loan application);
• Identifying information presented the same as information shown on other documents found to be fraudulent;
• Identifying information presented consistent with fraudulent activity (such as an invalid phone number or fictitious billing address);
• Social security number presented the same as one given by another account holder/student;
• A person fails to provide complete personal identifying information on a document when reminded to do so; or
• A person’s identifying information is not consistent with information on file for the account holder/student.

Suspicious Covered Account Activity or Unusual Use of Account Red Flags

• Change of address for an account followed by a request to change the account holder/student’s name;
• Account used in a way not consistent with prior use;
• Mail sent to the account holder/student is repeatedly returned as undeliverable;
• Notice to the University an account holder/student is not receiving mail sent by the University;
• Notice to the University an account has unauthorized activity;
• Breach in the University’s computer system security; or
• Unauthorized access to or use of account holder/student account information.

Alerts from Others Red Flags 

• Notice to the University by an account holder/student, identity theft victim, law enforcement or other person the University has opened or is maintaining a fraudulent account for a person engaged in identity theft.

8.01

Detecting Red Flags
Student Enrollment - In order to detect any of the Red Flags identified above associated with the enrollment of a student, University personnel will take the following steps to obtain and verify the identity of the person opening the account (individual departmental policies may contain additional Red Flags specific to their area):

               Detect 

• • • • Require certain identifying information such as name, date of birth, academic records, home address or other identification; and
      • Verify the student’s identity at time of issuance of student identification card (review of driver’s license or other government issued or tribally issued photo identification).

Existing Accounts - In order to detect any of the Red Flags identified above for an existing Covered Account, University personnel will take the following steps to monitor transactions on an account (individual departmental policies may contain additional verifications specific to their area):

               Detect 

• • • • Verify the identification of account holders/students if they request information (in person, via telephone, via facsimile, via email);
      • Verify the validity of requests to change billing address by mail or email and provide the account holder/student a reasonable means of promptly reporting incorrect billing address changes; and
      • Verify changes in banking information given for billing and payment purposes.

Consumer (Credit) Report Requests - In order to detect any of the Red Flags identified above for an employment or volunteer position for which a credit or background report is sought, University personnel will take the following steps to assist in identifying address discrepancies:

               Detect 

• • • • Require written verification from any applicant the address provided by the applicant is accurate at the time the request for the credit report is made to the consumer reporting agency; and
      • In the event notice of an address discrepancy is received, verify the credit report pertains to the application for whom the requested report was made and report to the consumer reporting agency an address for the applicant the University has reasonably confirmed is accurate.

9.01

Preventing, Mitigating, and Response to Identity Theft
In the event University personnel detects 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 (individual departmental procedures may contain additional steps specific to their area):

Prevent and Mitigate 

1. • Notify the Office of the Associate Vice President for Administration & Finance by filing a “Notification of Possible Privacy Breach” form found at http://bursar.okstate.edu/red-flag-rules. Reporting via EthicsPoint, the anonymous on-line reporting agency, may be used to provide this notification. Continue to monitor a Covered Account for evidence of identity theft;
   • Contact the account holder/student or document provider (for which a credit report was run);
   • Change any passwords or other security devices permitting access to covered accounts;
   • Not open a new Covered Account;
   • Provide the account holder/student with a new campus identification number;
   • Notify the Program Administrator for determination of the appropriate step(s) to take;
   • Notify law enforcement, OSU Police, if circumstances warrant;
   • Determine that no response is warranted under the particular circumstances.

Prevent Misuse of Account Holder/Student Identifying Information

In order to further prevent the likelihood of identity theft occurring with respect to Covered Accounts, the University will take the following steps with respect to its internal operating procedures to protect account holder/student identifying information (individual departmental procedures may contain additional steps specific to their area):

• • Ensure websites are secure or provide clear notice a website is not secure;
  • Ensure complete and secure destruction of paper documents and computer files containing account holder/student account information when a decision has been made to no longer maintain such information;
  • Ensure office computers with access to Covered Account information are password protected;
  • Avoid use of social security numbers (See Electronic Use of Social Security Numbers, P&P 3-0322);
  • Ensure computer virus protection is up-to-date; and
  • Require and keep only the kinds of account holder/student information necessary for University purposes.

10.01 

1. Oversight
   Responsibility for developing, implementing, and updating this program lies with the Committee for the University. The Committee is headed by a Program Administrator who is the Senior Vice President of Administration and Finance of the University or his/her designee. The remainder of the committee membership includes representatives from offices of Security Compliance, ID Card, Admissions, Registrar, Financial Aid, Bursar, University Health Services, Human Resources, and Housing. The Program Administrator will be responsible for ensuring appropriate training of University 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.
2. Staff Training and Reports
   • University 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. University staff shall be trained, as necessary, to effectively implement the Program. It is recommended employees sign a document to be stored in their personnel file stating they have been trained and understand this policy. Information will be tracked within OSU Training Services.
   • University employees are expected to notify the Program Administrator once they become aware of an incident of identity theft or of the University’s failure to comply with this program. At least annually or as otherwise requested by the Program Administrator, University staff responsible for development, implementation, and administration of the Program shall report to the Program Administrator on compliance with this program. The report should address such issues as effectiveness of the policies and procedures in addressing the risk of identity theft in connection with the opening and maintenance of Covered Accounts, service provider arrangements, significant incidents involving identity theft and management’s response, and recommendations for changes to the Program.
3. Service Provider Arrangements
   In the event the University engages a service provider to perform an activity in connection with one or more Covered Accounts, the University will take the following steps to ensure the service provider performs its activity in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of identity theft.
   • Require, by contract, service providers to have such policies and procedures in place; and
   • Require, by contract, service providers review the University’s program and report any Red Flags to the Program Administrator or the University employee with primary oversight of the service provider relationship.
4. Non-disclosure of Specific Practices
   For the effectiveness of this Identity Theft Prevention Program, knowledge about specific Red Flags identification, detection, mitigation and prevention practices may need to be limited to the Committee who developed this program and to those employees with a need to know. Any documents which may have been produced or are produced in order to develop or implement this program listing or describing such specific practices and the information those documents contain are considered “confidential” and should not be shared with other employees or the public. The Program Administrator shall inform the Committee and those employees with a need to know the information of those documents or specific practices which should be maintained in a confidential manner.
5. Program Updates
   University departments will annually review and update procedures to reflect changes in risks to account holders/students and the soundness of the University from identity theft. This policy will be periodically reviewed to consider the University’s experiences with identity theft situations, changes in identity theft methods, changes in identity theft detection and prevention methods, and changes in the University’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. If warranted, the Committee will revise this document and will ensure ongoing support of the Red Flags regulation.