The GAO, in a year-long study released this week, found that complaints of identity theft to the Federal Trade Commission are up 33 percent and the Social Security Administration had a 500 percent increase in allegations of Social Security number fraud in the past several years.
"It seems we all know someone who's had his identity stolen," Grassley said. "This crime is getting more common all the time. That's unacceptable. As the creator of Social Security numbers, the federal government has to be the protector of Social Security numbers. I don't understand why this problem continues after years of recognition on the Social Security Administration's part."
Grassley said he introduced legislation with Feinstein and Kyl and Sens. Richard Shelby of Alabama and Jon Cozine of New Jersey last September aimed at clamping down on identity theft. The Identity Theft Prevention Act of 2001 would impose additional duties on credit issuers and credit bureaus to ensure the accuracy of information in credit applications. The bill also speeds up the paper work process after an identity theft has been committed so that victims can more quickly reclaim their good credit.
"I'll continue looking at how the agency is safeguarding Social Security numbers and will work with my colleagues on passing legislation to protect Social Security numbers and prevent identity theft," Grassley said.
The GAO report says that combating identity theft will require a "multi-pronged approach" including "prevention efforts such as limiting access to personal information." Specifically, the GAO study found that reports of identity theft are increasing along a broad array of indicators:Page 1 of 2
?Federal Trade Commission Data: Calls to the Federal Trade Commission Identity Theft Clearinghouse increased roughly 33 percent, from 2,000 per week to 3,000 per week between March 2001 and December 2001.
?Consumer Reporting Agency Data: One of three national credit reporting agencies reported a 36 percent increase in identity theft alerts in over a 12 month period (19,347 to 29,593). Another credit estimated a 36% increase in its fraud alerts over the past two years (from 65,600 to 89,000)
?Social Security number misuse: The Social Security Administration Office of Inspector General has registered a 500 percent increase in allegations of Social Security number fraud in the past several years ? from 11,000 in 1998 to 65,000 in fiscal year 2001.
?VISA and MasterCard fraud losses: The GAO found that fraud losses in the domestic operations of VISA and MasterCard rose from about 700 million in 1996 to about $1.0 billion in 2000, an increase of 45 percent.
The Consumer Protection Division of the Iowa Attorney General's office has developed a brochure that suggests steps Iowans can take to reduce the risk of disclosing important personal information and of becoming a victim of identity theft. To see the guidelines, Iowans should visit the Consumer Protection Division's website at: http://www.state.ia.us/government/ag/idchoice.htm.