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The person becomes the victim of identity theft when someone else uses the person's personal information to commit fraud or other crimes. An individual who commits identity theft may appropriate a name, bank account number, credit card number, social security number, or other personal information. With the increase in the amount of personal information that is exchanged on the Internet, identity theft has developed into a major concern in the United States and abroad.
Both state government and the federal government have enacted a series of statutes that are designed to deter identity theft. Many of these statutes increase penalties or expand the roles that law enforcement officials play in the investigation of identity theft. Other statutes assist victims after their identities have been stolen.
The Federal Trade Commission (FTC), which serves as a clearinghouse for complaints about identity theft, has identified several means by which an identity thief may perpetrate the crime. These include the following:
Once an identity thief has obtained the personal information of a victim, the perpetrator may engage in a number of activities. Some of these illegal activities include the following:
Those who have become the victims of identity theft may take certain actions in order to protect themselves. In some situations, a person may not be aware that he has become a victim; in others, a person may suspect that she has been victimized, but needs to determine whether this is so. The information below summarizes the some of the steps that victims or potential victims of identity theft may take.
In some instances, identity theft will be obvious to the victim. A victim may receive a telephone call from a creditor after an identity thief has opened an account in the victim's name. In other circumstances, the victim may notice unusual charges on his or her credit card statement or unauthorized withdrawals from a checking or savings account.
Even where identity theft is not immediately obvious, a victim may experience other signs that this theft has taken place. For example, the victim may stop receiving bills or other mail, indicating that an identity thief has submitted a change of address form for the victim. Similarly, a victim may be denied credit for no apparent reason or may receive credit cards for which the victim did not apply.
Three nationwide consumer credit reporting companies, also referred to as credit bureaus, maintain credit reports about each consumer. These companies maintain such information as how many accounts a consumer has and whether the consumer has paid his or her bills on time. The three companies include the following: Equifax, Experian, and TransUnion. Contact information for these companies is available under "Organizations" at the conclusion of this essay.
Under amendments to the federal Fair Credit Reporting Act, passed in November 2003, each of these credit bureaus must provide every consumer with a free copy of the consumer's credit report. The credit report cannot be obtained directly from the credit bureaus, however. Instead, these reports must be obtained through one of the following: online at www.annualcreditreport.com; via phone at 1-877-322-8228; or by submitting a form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Georgia, 30348-5281.
In some instances under federal law, a consumer is entitled to additional free reports, such as when a company denies credit to a consumer. Moreover, some states provide for free access to credit reports. Otherwise, consumers may pay up to $9.95 to order a credit report from one of the reporting services.
Each of the three major credit bureaus maintains a fraud department. A consumer who is the victim of identity theft should contact the fraud department of one of the credit bureaus and ask that the company
This fraud alert indicates to a creditor that the creditor must contact the consumer before opening a new account or changing an existing account. If the consumer requests, the credit bureaus may only display the last four digits of the consumer's social security number on the credit reports.
When an identity thief opens a new unauthorized account, the victim may dispute the opening of the account. The Federal Trade Commission has prepared an ID Theft Affidavit that may be used when a consumer reports fraudulent activity and disputes an account. The ID Theft Affidavit is available at http://www.consumer.gov/idtheft/pdf/affidavit.pdf.
A victim of identity theft should file a report with the victim's local police or the police in the community where the theft took place. The victim should submit a copy of the police report, or at least the number of the report, to creditors and anyone else who might require proof that the crime has occurred.
A victim should submit a complaint with the FTC, which maintains a database of information regarding identity theft cases. Law enforcement agencies use this database during investigations. The FTC also uses this information in order to gather more data about identity theft in an effort to address the problem as a whole.
The FTC and others warn consumers that they should take active steps to protect their personal information. For credit card, bank, and phone accounts, consumers should create a password that a thief cannot guess. Similarly, a consumer should not give out personal information, via computer or otherwise, to anyone unless the consumer knows with whom he or she is dealing.
Congress has enacted a number of statutes that address identity theft. Some of these statutes focus on criminal sanctions for identity theft, while others focus more on protecting the victims of identity theft crimes.
The Identity Theft and Assumption Deterrence Act was promulgated in 1998 to establish identity theft as a federal crime. Under this law, a person who commits identity theft faces a maximum of 15 years in prison and/or a fine. The maximum term of imprisonment increases under some circumstances, such as when identity theft occurs in connection with drug trafficking or as a means to facilitate international terrorism. The statute also requires the FTC to receive complaints from individuals who have been victims of identity theft (discussed above).
Prior to the enactment of this statute, federal law only applied to the theft of identification documents and not identifying information. The 1998 law extends its application to the theft of "means of identification," which may include any of the following:
In 2004, President George W. Bush signed the Identity Theft Penalty Enhancement Act. The statute strengthens penalties for those who possess someone else's personal information with the intent to use the information to commit a crime. Penalties are further enhanced when the identity theft is done to commit an act of terrorism.
Congress passed the Fair and Accurate Credit Transactions Act in 2003 in an effort to prevent identity theft, among other purposes. The statute provides that consumers may request that the credit bu-
Several other federal statutes have been enacted in an effort to combat identity theft. Some of these statutes limit the financial liability of identity theft victims. Others prohibit the release of personal information, including social security numbers.
The various states have enacted several types of statutes that apply to identity theft cases. The following are some of the more common types of identity theft statutes.
As of 2005, the majority of states have enacted pieces of legislation that restrict the number of digits that may be printed on electronic receipts. Most states prohibit merchants from printing more than four or five digits, and several prohibit merchants from printing the card's expiration date. Some statutes limit the type of information that may be displayed in a receipt, restricting such data as a consumer's name or telephone number.
About half of the states have approved legislation that criminalizes the unauthorized use of encoded credit card information. In some states, such as Texas, the statute requires restaurants and bars to post signs warning employees against fraudulent use of or possession of identifying information.
Approximately 17 states as of 2005 have enacted statutes that require state agencies and companies to disclose security breaches that involve the potential release of personal information of consumers. In some instances, these breaches have compromised personal information of hundreds of thousands of individuals. These statutes provide notification to those who potentially could be the victims of identity theft as a result of such a breach.
Some states allow victims of identity theft to demand that credit reporting services freeze the victims' credit reports. The provisions of these statues are similar to those found in the federal Fair and Accurate Credit Transactions Act.
California in 2005 became the first state to enact legislation that addresses phishing, which is a practice of duping Internet users into divulging personal information. Congressional attempts to enact similar legislation failed in Congress in 2004 and 2005.
ALABAMA: The Consumer Identity Protection Act makes identity theft either a felony or a misdemeanor, depending on whether the defendant has had a prior conviction and the amount of financial loss involved with the theft.
ALASKA: The state's statute addressing theft by deception makes identity theft either a felony or a misdemeanor, depending on the circumstances.
ARIZONA: The state has enacted legislation addressing credit card numbers on receipts and credit card skimming. The state's statute addressing theft by deception makes identity theft a felony.
ARKANSAS: The state has enacted legislation addressing credit card skimming and breach of information. The state's statute addressing financial identity fraud makes identity theft a felony.
CALIFORNIA: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming and breach of information. The state's statute addressing identity theft provides for both a fine and a jail term.
COLORADO: The state has enacted legislation addressing credit card numbers on receipts.
CONNECTICUT: The state has enacted legislation addressing breach of information. The state's statute addressing identity theft makes identity theft a felony.
DELAWARE: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming, and breach of information. The state's statute addressing identity theft makes identity theft a felony.
FLORIDA: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming, and breach of information. The state's
GEORGIA: The state has enacted legislation addressing credit card numbers on receipts and breach of information. The state's statute addressing financial identity fraud makes identity theft a crime punishable by either a fine or a term of imprisonment.
HAWAII: The state's statute addressing identity theft makes identity theft a felony.
IDAHO: The state has enacted legislation addressing credit card numbers on receipts and credit card skimming. The state's statute addressing misappropriation of personal identifying information makes identity theft a misdemeanor or a felony, depending on the circumstances.
ILLINOIS: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming and breach of information. The state's statute addressing identity theft makes identity theft a misdemeanor or a felony, depending on the circumstances.
INDIANA: The state has enacted legislation addressing breach of information. The state's statute addressing identity theft makes identity theft a felony.
IOWA: The state has enacted legislation addressing credit card skimming. The state's statute addressing identity theft makes identity theft a misdemeanor or a felony, depending on the circumstances.
KANSAS: The state has enacted legislation addressing credit card numbers on receipts. The state's statute addressing identity theft makes identity theft a felony.
KENTUCKY: The state has enacted legislation addressing credit card numbers on receipts and credit card skimming. The state's statute addressing identity theft makes identity theft a crime subject to a fine or term of imprisonment.
LOUISIANA: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming, and breach of information. The state's statute addressing identity theft makes identity theft a felony.
MAINE: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming, and breach of information. The state's statute addressing misuse of identification makes identity theft a class D crime.
MARYLAND: The state has enacted legislation addressing credit card numbers on receipts. The state's statute addressing identity theft makes identity fraud a misdemeanor or a felony, depending on the circumstances.
MASSACHUSETTS: The state's statute addressing identity theft makes identity theft a felony.
MICHIGAN: The state has enacted legislation addressing credit card skimming. The state's statute addressing identity theft makes identity theft a felony. MINNESOTA: The state has enacted legislation addressing breach of information. The state's statute addressing identity theft makes identity theft a crimepunishable by a fine or jail term.
MISSISSIPPI: The state has enacted legislation addressing credit card skimming. The state's statute addressing fraudulent use of identity makes identity theft a crime punishable by a fine or jail term.
MISSOURI: The state has enacted legislation addressing credit card numbers on receipts and credit card skimming. The state's statute addressing identity theft makes identity theft either a felony or a misdemeanor depending on the circumstances.
MONTANA: The state has enacted legislation addressing breach of information. The state's statute addressing identity theft makes identity theft a crime punishable by a fine or a jail term.
NEBRASKA: The state has enacted legislation addressing credit card numbers on receipts. The state's statute addressing criminal impersonation makes identity theft either a misdemeanor or a felony depending on the circumstances.
NEVADA: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming and breach of information. The state's statute addressing identity theft makes identity theft a felony.
NEW HAMPSHIRE: The state has enacted legislation addressing credit card skimming. The state's statute addressing identity theft makes identity theft a felony.
NEW JERSEY: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming, and breach of information. The state's statute addressing identity theft makes identity theft a crime punishable by fine or jail term.
NEW MEXICO: The state has enacted legislation addressing credit card numbers on receipts. The state's statute addressing identity theft makes identity theft a misdemeanor.
NEW YORK: The state has enacted legislation addressing credit card numbers on receipts and breach of information. The state's statute addressing identity theft makes identity theft either a felony or a misdemeanor, depending on the circumstances.
NORTH CAROLINA: The state has enacted legislation addressing credit card numbers on receipts and breach of information. The state's statute addressing fraudulent identity fraud makes identity theft a felony.
NORTH DAKOTA: The state has enacted legislation addressing credit card numbers on receipts and breach of information. The state's statute addressing identity theft makes identity theft a felony.
OHIO: The state's statute addressing identity theft makes identity theft either a felony or a misdemeanor depending on the circumstances.
OKLAHOMA: The state has enacted legislation addressing credit card numbers on receipts. The state's statute addressing identity theft makes identity theft a felony.
OREGON: The state has enacted legislation addressing credit card numbers on receipts and credit card skimming. The state's statute addressing identity theft makes identity theft a felony.
PENNSYLVANIA: The state's statute addressing identity theft makes identity theft either a felony or a misdemeanor depending on the circumstances.
RHODE ISLAND: The state has enacted legislation addressing credit card numbers on receipts and breach of information. The state's Impersonation and Identity Fraud Act makes identity theft a crime punishable by fine or jail term.
SOUTH CAROLINA: The state's Personal Financial Security Act makes identity theft a felony.
SOUTH DAKOTA: The state has enacted legislation addressing credit card skimming. The state's statute addressing identity theft makes identity theft a misdemeanor.
TENNESSEE: The state has enacted legislation addressing credit card numbers on receipts and breach of information. The state's statute addressing identity theft makes identity theft either a felony or a misdemeanor depending on the circumstances.
TEXAS: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming, and breach of information. The state's statute addressing identity theft makes identity theft a felony.
UTAH: The state has enacted legislation addressing credit card skimming. The state's statute addressing identity theft makes identity theft either a felony or a misdemeanor depending on the circumstances.
VERMONT: The state's statute addressing identity theft makes identity theft either a felony or a misdemeanor depending on the circumstances.
VIRGINIA: The state has enacted legislation addressing credit card numbers on receipts and credit card skimming. The state's statute addressing identity theft makes identity theft either a felony or a misdemeanor depending on the circumstances.
WASHINGTON: The state has enacted legislation addressing credit card numbers on receipts, credit card skimming, and breach of information. The state's statute addressing identity theft makes identity theft a felony.
WEST VIRGINIA: The state has enacted legislation addressing credit card skimming. The state's statute addressing identity theft makes identity theft a felony.
WISCONSIN: The state's statute addressing misappropriation of personal identifying information makes identity theft a felony.
WYOMING: The state has enacted legislation addressing credit card skimming. The state's statute addressing identity theft makes identity theft either a felony or a misdemeanor depending on the circumstances.
Identity Theft: A Legal Research Guide. Best, Reba A., William S. Hein & Co., Inc., 2004.
"Take Charge: Fighting Back Against Identity Theft." Federal Trade Commission, 2004. Available at http://www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm.
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