Kleczka's Korner
A weekly update for Wisconsin's Fourth Congressional District

New Tools To Fight Identity Theft

By Congressman Jerry Kleczka

Last year, identity theft topped the list of consumer fraud complaints with approximately 85,000 reported incidents, according to a Federal Trade Commission (FTC) database.

Identity thieves steal personal information, such as name, address, Social Security number and date of birth. They use the information to set up fraudulent credit card accounts, order merchandise over the phone or Internet, racking up huge debts in the victim’s name.  Identity theft was far and away the number one complaint with 42 percent of the 204,000 complaints in the FTC's Consumer Sentinel, a central database that collects complaints from more than 50 law enforcement and private sector partners.

On the heels of the FTC report, the federal agency announced the creation of a new document designed to streamline the process for victims to recover from identity theft.  The ID Theft Affidavit is a form individuals can fill out to report information involving a stolen identity.  Previously, victims of identity theft might spend months trying to sort out and correct what damage has been done to their credit rating. The victims had to work to prove they didn’t spend money they were now expected to pay back.  This involved filling out separate forms for each of the companies involved, from credit bureaus to banks to credit card companies.

The affidavit will accepted by a number of banks, corporations, credit card companies and credit bureaus such as, AT&T, Bank of America, Capital One, Chase Manhattan Bank, Equifax, Experian, Fifth Third Bank, First National Bank Omaha, FleetBoston Financial, GE Capital, Merrill Lynch, Providian, Sears, TransUnion, and VW Credit.

The affidavit can be obtained by calling my Milwaukee office at (414) 297-1140, or you can print it off the Internet at www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf.  For more information about identity theft, visit http://www.consumer.gov/idtheft/. If you become a victim of identity theft, you can file a fraud complaint with the FTC by calling toll-free 1-877-FTC-HELP (1-877-382-4357).

One way to defend against identity theft is to prevent it from occurring in the first place.  With its ever greater use as a personal identifier, the Social Security number is among the most valuable pieces of information for an identity thief.  In order to prevent those numbers from falling into the wrong hands, I introduced the Personal Information Privacy Act, HR 1478.  This legislation prohibits the purchase or sale of Social Security numbers without the owner's written consent, and it goes a step further, prohibiting the use of an individual's Social Security number for identification purposes without written consent from the owner.

Because more and more businesses attempt to require Social Security numbers as personal identifiers, the bill also would protect consumers who decline to give their Social Security numbers to businesses.   If a corporation refuses to do business with anyone because they choose not to disclose their Social Security number, that company would be treated as engaging in an unfair or deceptive business practice, which is illegal.

An additional protection in the bill is that unless consumers provide prior written permission, credit reporting agencies would be forbidden from distributing consumers’ personal information.  Further, the sale or transfer of a consumer's transaction information, which is a history of past purchases, for marketing purposes would also be prohibited unless the consumer gave written consent.

The FTC ID Theft Affidavit is a good first step in aiding victims in their recovery from this fast growing crime.  But, we also need to strike at the source of the problem by preventing identity theft.  We can reduce the number of people needlessly victimized every year by providing protections like the Personal Information Privacy Act, which keeps information, such as Social Security numbers, secure.