State and Federal Laws
According to a report from the Federal Trade Commission's consumer protection bureau, 27.3 million Americans had their identity stolen between April 1998 and the end of 2003. The pace seems to be picking up as 9.9 million individuals fell victim over the past 12 months.
This hijacking of personal and financial information, which is used to perpetrate fraud or theft, cost businesses and financial institutions more than $48 billion in losses over this latest 12-month period.
Source: Online. http://www.CBSMarketWatch.com. 27 October 2004 Online reporter: Ray Martin
The consumers who fell prey to these scams paid more than $5 billion in costs. Consumer privacy has become a very public issue. So serious is the issue of privacy that governments worldwide are enacting legislation mandating the secure disposal of various types of information.
HIPAA
The Health Insurance Portability and Accountability Act (HIPAA) is forcing U.S. healthcare providers to change the way they approach their patients' confidential information.
GLBA
The Gramm-Leach-Bliley Act (GLBA) has had significant implications for banking and financial industries across the United States , changing the way these institutions handle confidential client information.
Fair and Accurate Transactions Act (FACTA)
The recently signed Fair and Accurate Transactions Act establishes a national system of fraud detection so victims can alert all three major credit rating agencies with a single phone call.
Starting Wednesday (June 1, 2005), employers must destroy personal information about their employees before they throw it out if they got the information from a credit report. That means "shredding or burning" paper documents or "smashing or wiping" computer disks.
Economic Espionage Act
The US Economic Espionage Act guards the confidentiality of trade secrets.
Wisconsin Shredding Law
The Wisconsin Shredding Law mandates that certain businesses, particularly financial, medical and tax preparation institutions, properly dispose of all confidential client records and information.
Identity Theft Penalty Enhancement Act
On July 15, 2004, President Bush signed into law a measure that imposes mandatory prison terms for criminals who use identity theft in committing terrorist acts and other offenses. A criminal will serve an extra five years in prison for using a false passport in connection with a terrorism-related crime. Two years would be tacked on for ID theft in connection with other types of crimes.
The recently signed Fair and Accurate Transactions Act establishes a national system of fraud detection so victims can alert all three major credit rating agencies with a single phone call.
Bill C-6
Bill C-6 is designed to protect the privacy of individual Canadian consumers.
Data Protection Act
The Data Protection Act requires companies throughout the United Kingdom to establish rules for the storage and destruction of electronic paper documents pertaining to employees' personal information.
California v. Greenwood
In 1988, the US Supreme Court ruled in the California v. Greenwood case that garbage is public domain. The case involved the police departments search of a drug dealers trash. They found enough drug paraphernalia to issue a warrant for his arrest and eventual conviction. Although Greenwoods attorney appealed that the search violated his 4th Amendment rights which limit search and seizure, the Court ruled 6 to 2 that the search was legal.
The Courts decision overturned the 1974 Privacy Act and stated that garbage is subject to inspection to seizure by anyone, including criminals and corporate competitors. Dumpster Diving has since become the number one source of corporate espionage and consumer fraud in this country.
Georgia Identity Theft Law takes effect July 1, 2002
Source: Online. http://biz.yahoo.com. 1 July 2002
A new privacy law takes effect Monday exposing Georgia businesses to fines up to $10,000 for the improper disposal of materials that contain personal information about customers.
The Georgia Identity Theft law aims to protect businesses customers from the problems that can result from having personal information fall into the wrong hands.
What type of information is considered personal information Personal information includes a wide range of data in any format written, printed, spoken, visual or electronic, says Rebecca Stone, an Arnall Golden Gregory attorney. It includes information about a customers medical condition or a customers account or identification number. Account balances, credit limits, loan applications, tax returns its all included.
The law also applies to any information capable of being associated with a particular customer Social Security numbers, drivers license numbers, photographs, dates of birth, medical information or disability information.
Businesses that need to pay strict attention to this law include any that obtain credit applications or maintain customer database records that include the name, address and Social Security number or tax identification number of customers, Stone said. If a business fits that description, it should develop a policy for properly destroying personal data. Each violation can result in fines up to $10,000.
California creates Identity Theft Law
Source: Online. http://www.newsbytes.com. 11 October 2001 ; By Robert MacMillan, Newsbytes.
WASHINGTON , D.C. -- The bill requires businesses to cease printing Social Security numbers on health plan and employer identification cards, as well as other kinds of IDs. It also forbids the future printing of Social Security numbers on bank statements and other documents sent by mail, and allows people to freeze access to their credit reports.
"The advances in technology haven't just made our lives easier, they've also made life easier for criminals who want to steal people's identities, go on an unlimited shopping spree and stick someone else with the bills," Bowen said in a statement. "Identity theft is one of the easiest, most risk-free crimes thieves can commit. They don't need a gun, a knife, or a getaway car. All they need is someone's Social Security number and a pen."
"The security freeze lets you lock up your credit history, so criminals can't assume your name, get approved for loans and credit cards based on your good credit rating, and then send the collection agencies chasing after you," Bowen added. "Without access to a credit report, businesses aren't going to issue credit, loans and services to someone who walks through the door with your name and Social Security number claiming they're you."
Bowen also cited statistics from the California Public Interest Research Group showing that identity theft victims on average spend 175 hours fighting $18,000 in fraudulent charges, such as bad checks, unpaid credit card bills and overdue car loans.
She also said the U.S. Federal Trade Commission's ID theft hotline typically receives 1,700 calls a week claiming identity theft.
Bill to stop theft of Social Security numbers gains momentum
Source: Online. http://www.wral-tv.com/news/national. 31 August 2002
Washington (AP) Rep. Mark Foley was stunned when he received a call last year from a collection agency wanting to know when he planned to pay for more than $700 worth of items purchased with a new credit card.
The Florida Republican said he didnt buy the items or even own the card. An investigation revealed someone else had applied for it, using Foleys Social Security number.
A bill approved Thursday by a House Ways and Means subcommittee seeks to combat that problem, known as Identity Theft.
The legislation would make the sale of Social Security numbers illegal and prohibit the government from putting those numbers on public documents.
In addition, motor vehicle departments could not display Social Security numbers on licenses or vehicle registrations. The bill also prevents credit agencies and other businesses from refusing to do business with someone who wont provide a Social Security number.
With Social Security numbers being used so frequently, that number had become the key for a criminal to assume your identity, Bunning said. This bill will allow all Americans to keep their Social Security number far more secure. |
