Worried About Identity Theft?

Wall Street Journal ^ | July 22, 2006 | SUZE ORMAN

[yoe]

The carnival surrounding the recent loss -- and subsequent recovery -- of a laptop containing personal information for approximately 27 million veterans and active-duty American soldiers has diverted attention from a more important threat. Incredibly, just when identity theft has blossomed into a national epidemic, Congress is considering legislation that would impair the ability of individuals to protect themselves against this crime and related frauds.

Each year, according to the FTC, several million people are victims of identity theft, generating losses estimated in the tens of billions. Strong laws have been passed in many states, including Florida, Utah, New York, New Jersey, Illinois and California, to reduce these thefts and losses. Yet Congress is poised to pre-empt these laws with a federal standard that would seriously weaken consumer protection. This is indefensible: It is crucial that federal law not undo all of the progress that's been achieved.

The state reforms enable you to activate a "credit freeze," which blocks a prospective lender from issuing new credit in your name without first getting your permission. For example, before a department store could issue a new credit card in your name, it would have to contact you at your home or cell phone number, and you would have to respond with pre-established, private information. Or, if you wanted to apply for credit, you would contact a credit bureau and, after supplying the right information, request that your credit data be released, either for a particular lender or for a specific time. The bottom line: Unless you expressly permitted it, no new credit -- whether for a retail charge account, car loan, cell phone or apartment lease -- may be issued.

[yoe]

Cont.....This approach is the equivalent of only selling locks to people who have already been burglarized. It is an absurd proposal. Nonetheless, the bill has been approved by the House Financial Services committee, and the full House of Representatives is expected to vote on H.R. 3997 before the end of the month.

Call your Congress critters to stop this bill.

[King Moonracer]

Yet Congress is poised to pre-empt these laws with a federal standard that would seriously weaken consumer protection.

Ah yes, more whoring for campaign money. Even the massive pig I work for tries to squeeze the employees for PAC money for this very reason.

[TommyDale]

Here's a fairly new one to me: There is a new trend in local churches to seek "due diligence" to avoid lawsuits against the congregation. Companies are now offering "background checks" for not only paid church staff, but even volunteers. At first glance, this seems a good thing to do, to protect the church from some wacko child molester amidst the children's programs.

But the big questions are: "Who performs the background check, and who maintains that database? What guarantee do those employees and volunteers have that their personal data is safe? How does anyone know that the database won't be sold to someone for some dastardly purpose? How do we know the government won't eventually gain access when they decide to shut down local churches?"

[aimhigh]

Identity theft is easy to stop. Just make a company liable if they give away your ID to anyone. If a credit card company issues a card in my name to someone else, they are currently exempt from liability, and Congress knows this.

[conservatism_IS_compassion]

Counterfeiting of money is just theft of the government's identity.

North Korea is doing that to America already.

I marvel that massive identity theft against individual Americans is not the weapon of choice against America in general.

[upchuck]

We're from the Imperial, Federal Government and we're here to help you.

[thoughtomator]

Worried about identity theft? Click here!

[5Madman2]

I have no worries about identity theft

After my Divorce, my credit rating is so far in the sewer, no one would want to be me :)

If they take my identity, they gotta take the payments

[steve-b]

Identity theft is easy to stop. Just make a company liable if they give away your ID to anyone. If a credit card company issues a card in my name to someone else, they are currently exempt from liability, and Congress knows this.

The use of the term "identity theft" for what is properly termed "credit card fraud" is a neat bit of Newspeak that shifts the onus from the credit card companies' lousy security (e.g. mailing out preapproved credit card offers which can be easily intercepted and used by crooks) to the customer (who can then be sold "identity theft insurance" to pay costs incurred by these poor business practices).

[aimhigh]

Excellent point.