Member Information and Electronic Confidentiality and Security Policy

MEMBER INFORMATION AND ELECTRONIC CONFIDENTIALITY AND SECURITY POLICY

PURPOSE

To provide a framework for the protecting the confidentiality of member information, and ensure compliance with applicable laws and regulations.

POLICY STATEMENT

It is the policy of Parishioners Federal Credit Union to treat all information about members and their accounts as confidential. The credit union will not release information about members or their accounts unless required to do so by law or legal document properly executed and presented under appropriate state or federal law. The sole exception to this policy is that the credit union will report credit information to a designated consumer information reporter. For reporting of their credit information, both the credit union and the consumer information reporter shall comply with the Fair Credit Reporting Act.

Parishioners Federal Credit Union understands and recognizes the need to respect the privacy of its members and to protect the personal and non-personal information it gathers during the course of everyday business functions at the credit union.

Parishioners Federal Credit Union has established internal procedures to ensure the confidentiality and the security of our member records and information; to protect that information from inaccuracies, theft, unauthorized use and inadvertent or purposeful modification or destruction.

CONFIDENTIALITY, SECURITY, AND ACCESS STANDARDS

The credit union restricts access to nonpublic personal information about our members to those employees who need to know that information in order to provide products and/or services. We maintain physical, electronic, internal policies and procedural safeguards that comply with federal standards to guard member nonpublic personal information.

A. Deposit Accounts. All data relating to deposit accounts of members and other information provided to the credit union shall be treated as confidential information, subject to release only to the extent not prohibited by law

B. Loan Accounts. All data relating to loan accounts shall be treated as confidential information subject to release only to the extent not prohibited by law.

• Original Records. Original copies ofall loan documents will be stored infireproof safes.
• Stored Records such as personnel files and contract will be kept in fireproof safes or the vault.

C. Release of Records. No member records will be released to third parties pursuant to legal process or otherwise, in violation of the State Statutes relating to privacy of financial records, or the federal Right to Financial Privacy Act.

D. Training. All new personnel, including personnel employed by credit union by virtue of a merger with or acquisition of another financial institution, will be trained with regard to the confidentiality of member records, procedures for accessing member records, and limitations on access to member records, as part of their initial training. All personnel will be trained with regard to any changes in the procedures for maintenance of member confidentiality in addition to regular ongoing training.

1. Regulatory Compliance. In order to help ensure that member financial information is safeguarded from unauthorized use, Parishioners Federal Credit Union has established written policies and procedures, as well as training materials for its employees to comply with Regulation P-Privacy, the Fair Credit Reporting Act, the Right to Financial Privacy Act and the Electronic Funds Transfer Act, all of which deal with member privacy (confidentiality) issues.

1. Public Access Areas. Employees will exercise caution that confidential member or credit union documents are not placed or left unattended in potential view of unauthorized parties. If an employee leaves a work area, care shall be taken to properly store confidential material so it is not exposed to public view. Employees shall also be observant of member activities while on credit union premises to help them avoid unintentional discard or disclosure of personal information.

G. Board Information. Current and former Board of Director members and Committee members must adhere to the same confidentiality, security, and access standards as described above. Emails of a confidential nature including Board packages will be sent by a secure and encrypted manner.

DESTRUCTION OF MEMBER RECORDS

When the credit union no longer needs (or is required) to retain information entitled to confidential treatment (or has transferred information provided by the member or others to its own medium for retention), the recorded information (or the information in form provided) shall be destroyed (or obliterated) in a manner rendering the information unrecoverable. If destruction or obliteration of data is not possible without destruction of the medium on which such information is stored or displayed, such medium shall be destroyed in accordance with the following procedures:

A. Records To Be Destroyed. The credit union has contracted with a reputable source for destruction of records in a timely manner.

B. Credit union Computers and Electronic Media. All credit union computer equipment and electronic media will be securely destroyed before disposal.

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During the normal course of business credit union employees will work with documents containing confidential and sensitive member and credit union propriety information.

Each employee has a responsibility and duty to protect such information from unauthorized or accidental use or disclosure. Accordingly, the following practices will be observed:

• Trash - Confidential or sensitive consumer, member or credit union information shall not be placed in trash receptacles. Trash receptacles at individual work areas shall be placed in a manner that they are not easily accessible to the general public. Trash receptacles located for member convenience in lobby areas will be observed to prevent unauthorized use.

• Shred Bins – Any documents containing confidential or sensitive member or credit union information must be discarded into one of the secure shred bins located on credit union premises. In the event a shred bin is not available, employees must utilize a paper shredder to destroy confidential information. Physical access to the contents of shred bins shall be controlled by lock or storage in a secure nonpublic area. Shred bin contents will be disposed of in a manner where the contents are rendered unreadable and unrecoverable.

SECURITY MEASURES
A. / Access rights to member information. Only employees and vendors with a need to access member information to conduct a transaction by or on behalf of the member will be granted that access.
B. / Access rights on member information systems. Managers will assign controls to authenticate and grant access only to authorized individuals and companies.
C. / Access restrictions at locations containing member information. Physical security will be maintained and access to electronic systems restricted to those individuals and companies authorized.
D. / Encryption of electronic member information. The credit union will incorporate encryption software to protect confidential member information, including, while in transit or in storage on networks or systems to which unauthorized individuals may have access.
E. / New systems and upgrades. The addition or modification of information systems will be consistent with this electronic security policy. The credit union’s procedures will confirm that member information system modifications are consistent with the credit union’s information security program.
F. / Duel control. Whenever possible, the credit union will utilize dual control procedures, segregation of duties, and employee background checks for employees with responsibilities for or access to member information, in the same manner it does for other sensitive positions.
G. / Outside contracts. When utilizing an outside service provider, the credit union will establish contract provisions and oversight mechanisms to protect the security of member information maintained or processed by service providers.

• Service providers must implement an effective information security program to protect member information and member information systems.
• Service providers will be contractually prohibited from sharing any member information with the exception of that information necessary to conduct transactions or services requested on behalf of the member or the credit union.
• Service providers will be requested to provide copies of any audit or SAS 70 or other security report to the credit union upon request.

H. / Intrusion Detection Systems. When feasible, the credit union will employ monitoring systems and/or procedures to detect actual and attempted attacks on or intrusions into member information systems, including review of transactions and logs.
I. / Unauthorized access. The credit union will develop procedures that specify actions to be taken when unauthorized access to member information systems is suspected or detected.
J. / Disaster Protection. The credit union will employ reasonable means of protecting access to member information and critical information systems from potential damage or destruction due to potential physical hazards, such as fire and water damage, and,
K. / Disaster Recovery. The credit union will modify its disaster recovery program to preserve the integrity and security of member information in the event of computer other technological failure, including, where appropriate, reconstructing lost or damaged member information.
TRAINING
The credit union will train all new staff, and conduct periodic subsequent training of all staff to recognize, respond to, and, where appropriate, report to regulatory and law enforcement agencies, any unauthorized or fraudulent attempts to obtain member information, including filing of a Suspicious Activity Report.
ONGOING TESTING
The credit union will regularly test the key controls, systems and procedures of the information security program to confirm that they control the risks and achieve the overall objectives of the credit union’s information security program.
DATA BREACHS

Electronic Code of CALIFORNIA Regulations

California Civil Code §1798.29; 1798.80
S.B. 1386 (signed into law September 25, 2002)
Effective July 1, 2003
S.B. 24 (signed into law August 31, 2011)
Effective January 1, 2012
S.B. 46 (signed into law September 27, 2013)
Effective January 1, 2014
States that any person, business, or state agency that does business in California and owns or licenses computerized data that contains personal informationmust provide notification of a data breech as follows:
Notification Obligation. Any Entity to which the statute applies shall disclose any breach of the security of the system following discovery or notification of the breach in the security of the data to any CA resident whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person.
Attorney General Notification. If an Entity is required to notify more than 500 California residents, the Entity shall electronically submit a single sample copy of the notification, excluding any personally identifiable information, to the Attorney General.
Third-Party Data Notification. If an Entity maintains computerized data that includes personal information that the Entity does not own, the Entity must notify the owner or licensee of the information of any breach of the security of the data immediately following discovery if the personal informationwas, or is reasonably believed to have been, acquired by an unauthorized person.
Timing of Notification.The disclosure shall be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement and any measures necessary to determine the scope of the breach and restore the reasonable integrity of the data system.
The provisions governing maintenance of personal informationthat the Entity does not own appear applicable to any Entity maintaining information on CA residents, whether or not the Entity conducts business in California.
Security Breach Definition. An unauthorized acquisition of computerized data that compromises the security, confidentiality, or integrity of personal information maintained by the Entity. Good-faith acquisition of personal informationby an employee or agent of the Entity for the purposes of the Entity is not a breach of the security of the system, provided that the personal information
Personal Information Definition. [1] An individual’s first name or first initial and last name in combination with any one or more of the following data elements, when either the name or the data elements are not encrypted:
Social Security Number;
Driver license number or CA identification card number;
Account number or credit card number or debit card number in combination with any required security code, access code, or password that would permit access to an individual’s financial account; Medical information (any information regarding an individual’s medical history, mental or physical condition, or medical treatment or diagnosis by a health care professional); or Health insurance information (an individual’s health insurance policy number or subscriber identification number, any unique identifier used by a health insurer to identify the individual, or any information in an individual’s application and claims history, including any appeals records).
[2] Effective January 1, 2014: User name or email address, in combination with a password or security question and answer that would permit access to an online account.
Personal information does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.
Notice Required. Notice may be provided by one of the following methods:
Written notice; or Electronic notice, if the notice provided is consistent with the provisions regarding electronic records and signatures set forth in 15 U.S.C. § 7001 (E-SIGN Act).
Effective January 1, 2014: For breaches of login credentials for an email account furnished by the Entity, notice may not be provided to the breached email address, but may be provided by one of the following methods:
Written notice;
Electronic notice, if the notice provided is consistent with the provisions regarding electronic records and signatures set forth in 15 U.S.C. § 7001 (E-SIGN Act); or
Clear andconspicuous notice delivered to the California resident online when the CA resident is connected to the online account from an IP address or online location from which the Entity knows the CA resident customarily accesses the account.
The notice shall be clear and conspicuous and shall include a description of the following:
Date of the notice;
Name and contact information for the Entity;
Type of personal information subject to the unauthorized access and acquisition;
The date, estimated date, or date range during which the breach occurred, if it can be determined;
Whether notification was delayed as a result of law enforcement investigation, if that can be determined;
The toll-free telephone numbers and addresses of the major credit reporting agencies if the breach exposed a social security number or a driver's license or California identification card number.
At the Entity’s discretion, the notice may also include:
Information about what the Entity has done to protect individuals whose information has been breached;
Advice on steps that the person whose information was breached may take to protect him or herself
Effective January 1, 2014: For breaches of only user name or email address, in combination with a password or security question and answer that would permit access to an online account, notice may be provided in electronic or other form and should direct CA residents to:
Promptly change their password, security question or answer, or
Take other appropriate steps to protect the online account with the Entity and all other online accounts with the same user name or email address and password or security question or answer.
Substitute Notice Available. If the Entity demonstrates that the cost of providing notice would exceed $250,000, or that the affected class of subject persons to be notified exceeds 500,000, or the Entity does not have sufficient contact information. Substitute notice shall consist of all of the following:
Email notice when the Entity has an email address for the subject persons;
Clear and conspicuous posting of the notice on the Entity’s Web site if the Entity maintains one; and
Notification to major statewide media and theCalifornia Office of Privacy Protection. State agencies using substitute notice must notify the California Office of Information Security within the Office of Technology.
Exception: Own Notification Policy. An Entity that maintains its own notification procedures as part of an information security policy for the treatment of personal information and is otherwise consistent with the timing requirements of the statute shall be deemed in compliance with the notification requirements of the statute if it notifies subject persons in accordance with its policies in the event of a security breach.
Exception: HIPAA-Covered Entities (effective Jan. 1, 2012). A covered entity under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) will be deemed to have complied with the notice requirements in this state law if it has complied with the notice requirements in Section 13402(f) of the Health Information Technology for Economic and Clinical Health Act (HITECH).
Other Key Provisions:
Delay for Law Enforcement. Notification may be delayed if the law enforcement agency determines that the notification will impede a criminal investigation. The notification required by the statute shall be made after the law enforcement agency determines that it will not compromise the investigation.
Private Right of Action. Any customer injured by a violation of this title may institute a civil action to recover damages. In addition, any business that violates, proposes to violate, or has violated this title may be enjoined. Waiver Not Permitted.

Electronic Code of Federal Regulations

Consistent with the definition of data breach in §75.112 of this subpart, a data breach occurs under this subpart if there is a loss or theft of, or other unauthorized access to, other than an unauthorized access incidental to the scope of employment, data containing sensitive personal information, in electronic or printed form, that results in the potential compromise of the confidentiality or integrity of the data. The term “unauthorized access” used in the definition of “data breach” includes access to an electronic information system and includes, but is not limited to, viewing, obtaining, or using data containing sensitive personal information in any form or in any information system. The phrase “unauthorized access incidental to the scope of employment” includes instances when employees of contractors and other entities need access to sensitive information in order to perform a contract or agreement but incidentally obtain access to other sensitive information. Accordingly, an unauthorized access, other than an unauthorized access incidental to the scope of employment, to data containing sensitive personal information, in electronic or printed form that results in the potential compromise of the confidentiality or integrity of the data constitutes a data breach. In addition to these circumstances a data breach is also interpreted to include circumstances in which a user misuses sensitive personal information to which he or she has authorized access. The following circumstances do not constitute a data breach and, consequently, are not subject to the provisions of this subpart: