Identity theft battle moves to the states

If you are looking to fight identity theft problems help is on the way. According to a story in the Washington Post today 33 states and the District of Columbia let consumers place a “security freeze” on their credit files and many more states are considering similar legislation. The explosion of identity theft is top of mind among U.S. consumers according to data released recently by the U.S. Federal Trade Commission (FTC). More than a quarter of a million ID theft complaints were lodged with the agency in 2006, accounting for 36% of the 674,000 complaints the FTC received. That number is down slightly from 2005, when ID theft accounted for 37 percent of all complaints. This marks the seventh consecutive year that identity theft has been ranked number one. But more states are helping consumers fight back. For example, District of Columbia residents will be able to request a credit freeze starting July 1. Maryland’s General Assembly approved a similar bill this year and Virginia is among at least four other states where lawmakers are debating credit-freeze legislation. In Massachusetts a bill is under consideration would allow individuals, for a $10 fee, to place a freeze on their credit history – limiting access to only those lenders that are pre-approved. A freeze blocks businesses and potential fraudsters from gaining access to a consumer’s credit report and score and from granting new lines of credit in the consumer’s name. In many states, consumers who want to remove the freeze can use a special identification number to unlock access to their credit file, the Post says. In some cases, there are additional fees if a consumer wants to remove or temporarily lift a freeze. In all states with credit-freeze laws, victims of identity theft can obtain a freeze without paying a fee, although many states require that the victim provide a copy of a police report detailing the incident, the Post article says. States aren’t the only ones getting into the act. The U.S. government plans to establish a national identity theft law enforcement center and create a multiyear public education campaign about the dangers of ID theft. The President’s Identity Theft Task Force, created by George Bush in May 2006, also called for national data protection standards for private companies that collect and sell personal information, as well as a national law requiring companies to tell customers when their personal data has been compromised. Congress debated several data breach notification bills but failed to pass them during its last session. Five data breach notification bills have been introduced this year.