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New York Eyes Identity Theft Prevention

April 19, 2005
New York Attorney General Eliot Spitzer and representatives of consumer advocacy and crime victims organizations are urging the State Legislature to protect consumers from identity theft and the unauthorized use of personal data.

ChoicePoint • Lexis-Nexis Parent To Buy ChoicePoint • ChoicePoint Settles Data Breach Lawsuit • More ChoicePoint Identity Theft Victims Identified • ChoicePoint Settles With Attorneys General Over Data Breach • FTC Finally Sets Up Redress For ChoicePoint Victims • ChoicePoint Names a "Consumer Advocate" • FTC Fails To Pay Victims Of ChoicePoint Data Breach • ChoicePoint Gets a Makeover • Data Blunders Cost ChoicePoint $15 Million • Guilty Plea in ChoicePoint Data Theft • ChoicePoint Finds More Cases Of Illegal Data Access • ChoicePoint Responds • PATRIOT Act Further Empowers ChoicePoint • Previous Data Thefts Went Unreported • Consumers Will Be Able to See Their ChoicePoint Records, Company Says • Nigerian Sentenced to Prison in ChoicePoint Theft • State Tally of ChoicePoint Victims • ChoicePoint Breach Worse Than First Reported • Is National Security Compromised by ID Theft? • States Demand ChoicePoint Notify ID Theft Victims • Private Information Stolen from Nationwide Consumer Database

Spitzer has submitted a package of bills aimed at providing consumers better control over the dissemination of their personal information, strengthening government's ability to prosecute crimes leading to identity theft and increasing penalties for such crimes.

"It has been said that the theft of one's identity and personal information is not a matter of 'if' but a matter of 'when'," Spitzer said. "New York State must enact reforms to strengthen consumers' ability to control personal information and to facilitate the prosecution of identity theft crimes."

In February, the Federal Identity Theft Data Clearinghouse reported that 38 percent of all fraud claims in 2004 related to identity theft, and New York State ranked seventh in the nation in per-capita identity theft reports. Moreover, a national survey conducted by the Federal Trade Commission estimated that the number of victims in 2002 approached 10 million, including 663,300 New Yorkers.

Spitzer noted that in the last nine weeks alone, numerous incidents have highlighted the issue including:

• Two major information brokerage companies, ChoicePoint, Inc. and LexisNexis have admitted that data files of over 455,000 consumers were breached;
• One of the world's largest financial institutions, Bank of America, confirmed that backup tapes containing personal data on 1.2 million accounts were missing;
• Federal authorities confirmed an investigation into the electronic hacking theft of eight million credit card accounts from the processor of credit transactions for MasterCard, Visa, Discover and American Express;
• A popular shoe store chain, DSW Shoe Warehouse admitted that customer credit information was stolen from over 100 of its stores; and
• Approximately 180,000 GM Mastercard holders will soon receive notification that someone might have stolen their personal information in a data breach at Polo Ralph Lauren Inc.

Spitzer's legislative proposals would address many of these incidents by:

• Providing identity theft victims better control over their personal identifying information, including: allowing for "security freezes" on credit files; and providing significantly increased protections against a private company's disclosure of a customers' social security numbers;

• Requiring companies to provide notice to individual consumers involved in instances in which a security breach has exposed personal information concerning 500 or more New Yorkers;

• Facilitating the ability of victims to file criminal complaints with law enforcement agencies;

• Requiring that information brokers notify consumers whenever a report containing personal information - such as telephone numbers, bank account information, income, medical information, driving record, and purchasing preferences - has been issued and mandating the disclosure include contact information of the entity that requested the report. The bill also would provide consumers access to their profiles compiled by information brokers;

• Establishing statewide personal information "opt-out" lists, similar to the Telemarketing Do Not Call program, for consumers who want to ensure their confidential personal information is not disclosed;

• Facilitating prosecutions against computer hackers by creating specific criminal penalties for the use of encryption to conceal a crime, to conceal the identity of another person who commits a crime, or to disrupt the normal operation of a computer;

• Increasing criminal penalties for gaining unauthorized access through a computer to data about employment, salary, credit or other financial or personal information;

• Facilitating prosecutions against hackers and others who surreptitiously gain access to computers, but do not steal or destroy computer material.

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