Although many of us may know of someone victimized by identity theft, some folks still feel it won't happen to them. Unfortunately, it appears the chances of falling victim to identity fraud are getting worse.
In our increasingly cash-free society, advanced technology allows consumers to shop online, pay with plastic and receive their paychecks or pay their monthly bills through automatic deposit and withdrawal. High tech commerce has yielded cost-savings for businesses, helped fuel the economy and made life more convenient for time-strapped families, workers and college students. As a result, a massive amount of personal financial information is housed in databases administered by banks, credit card issuers and other financial institutions around the world.
Common thieves and pickpockets have been a ubiquitous threat to everyday life for ages. As con-artists changed with the times and grew more sophisticated, consumers learned to adapt by shredding personal financial documents, regularly checking credit reports and safeguarding Social Security numbers. But emerging evidence indicates today's rip-off artist may just as easily be working from inside an office park than lurking in a dark alley.
Federal prosecutors in November revealed an unprecedented scheme to steal the personal financial information of 30,000 Americans. The grand-scale identity heist involves at least three persons charged with downloading data from a computer and selling the information to rip-off artists. Over a three-year period, an internal help-desk employee allegedly hacked into the employer's database and sold sensitive financial information, including credit card numbers and checking account information. Then the crooks used this information to go on a spending spree. From cars to jewelry, clothes, computers and furniture, the sky's the limit for imposters who steal the good name and credit rating of their unwitting victims. So far, financial losses from this recent investigation have reached $2.7 million and authorities expect the numbers to climb.
Clearly, action needs to be taken by individual consumers as well as lending institutions, credit bureaus, law enforcement authorities and policymakers to clamp down on these 21st century identity thieves. More Americans and businesses than ever before are vulnerable to this fraud if insiders become lured into selling off sensitive information. And it's certainly not a good thing for the economy.
From my senior position on the Senate Judiciary Committee, I have led an effort in Congress to clamp down on identity theft, including a bill that would impose additional duties on credit issuers and credit bureaus to ensure the accuracy of information provided on credit applications. I'm also working on legislation that would increase criminal penalties for perpetrators of identity theft.
Before adjourning the 107th Congress in November, the U.S. Senate passed legislation I co-sponsored to help thwart identity theft and alleviate the harm to those victimized by the crime. "The Identity Theft Victim's Assistance Act" would prohibit credit reporting companies from issuing reports on consumers who prove they have been the victims of identity theft. It also would give victims two years to file a lawsuit alleging a credit reporting company improperly released a credit report. Recognizing the uphill battle facing consumers victimized by this crime, my bill would standardize the system for reporting identity theft to consumer credit agencies and businesses.
Credit bureaus also can help consumers protect themselves against fraud by alerting them when an account has been opened in their name. Consumers can purchase identity-theft insurance policies. And it's key to make routine inquiries about your credit ratings with the three major credit bureaus: TransUnion LLC, Experian Information Solutions Inc. and Equifax Credit Information Services Inc.
Identity theft is costly and a major inconvenience. It can take months of painstaking efforts contacting creditors, financial institutions and credit bureaus to restore one's good name and credit. As a senior lawmaker in the U.S. Senate, I'll continue working to advance bipartisan legislation aimed at curbing identity theft, empowering consumers and exacting greater accountability from credit bureaus. Updating the laws on the books ought to make it harder for crooks to steal someone else's identity and rob them blind of their good name and good credit.