Board of Supervisors Meeting Date: 

R. Holder Trumbo, Jr., Chairman, Scott District Supervisor

February 12, 2009

Staff Lead:


Kevin J. Burke, County Attorney

County Attorney




A Resolution to Adopt an Identity Theft Prevention Program in Compliance with the Fair and Accurate Credit Transactions Act of 2003

Topic Description:


Financial institutions and creditors are required by the Fair and Accurate Credit Transactions (FACT) Act of 2003 and related Federal Trade Commission Regulations to implement a program to detect, prevent, and mitigate instances of identity theft.  The Regulations are commonly referred to as the “Reg Flags Rule”.  All creditors are required by FACT to institute the programs that provide for the identification, detection, and response to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft by May 1, 2009. 

The Red Flags Rules apply to “creditors” with “covered accounts.”  A creditor is any entity that regularly extends, renews, or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit.  Government entities that defer payment for goods or services are considered creditors that must implement an identity theft prevention program.  A covered account is an account used mostly for personal, family, or household purposes, and that involves multiple payments or transactions. Covered accounts include utility accounts, deposit accounts, and extensions of credit, such as accounts for the purchase of property or services by deferred payment.  All hangar rental accounts, tie down rental accounts, aircraft fuel accounts, aircraft services accounts, aircraft supply accounts, recycling accounts, tipping fee accounts, and sports field lighting accounts that are held by customers of the Department of Environmental Services, the Warrenton-Fauquier Airport, and the Department of Parks & Recreation, whether residential, commercial, or industrial, are covered by the Rule.  The Federal Trade Commission opined that tax accounts are not covered accounts pursuant to FACT and the Regulations. 

Under the Program, creditors must develop a written program that identifies and detects the relevant warning signs – or “red flags” – of identity theft. These may include, for example, unusual account activity, fraud alerts on a consumer report, or attempted use of suspicious account application documents. The program must also describe appropriate responses that would prevent and mitigate the crime and detail a plan to update the program. The program must be approved by the governing body.

The attached Fauquier County Identity Theft Prevention Program has been drafted for the Board’s consideration.  If approved, the Fauquier County Program would affect the Department of Environmental Services, Department of Parks & Recreation, and Warrenton-Fauquier Airport.  

Requested Action of the Board of Supervisors: 

Consider adoption of the attached resolution

Financial Impacts Analysis:

There are no financial impacts from implementation of this Program.

Identify any other Departments, Organizations or Individuals that would be affected by this request:

Department of Environmental Services
Notification sent to:  Mike Dorsey, Director
Department of Parks & Recreation
Notification sent to:  Larry Miller, Director
Warrenton-Fauquier Airport
Notification sent to:  Mike Anderson, Airport Manager


1.                  Fauquier County Identity Theft Prevention Program.

2.                 Informational Memorandum regarding the Red Flags Rule Program derived from the Federal Trade Commission.

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