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Senate Explores Identity Theft Protection

July 29, 2005
After a year in which millions of Americans have been put at risk of identity theft because of a series of data security breaches, Congress is exploring legislative remedies. The Senate Judiciary Committee has begun consideration of S. 1408, the Identity Theft Protection Act.

Data Theft • T-Mobile: No Hacking in Data Breach • T-Mobile Confirms Data Breach • Consumers Increasingly Concerned About Online Transactions • Are Identity Theft Services Worth the Cost? • Online Tools Help Spot Financial Fraud • Financial Fraud Hits 7.5 Percent Of Americans In 2008 • Feds Charge Mortgage Broker In Potential Data Breach • Millions of Credit Cards Exposed in Data Breach • 2008 Data Breach Total Soars • Bank Data Breach Threatens 248,000 in North Carolina • GPS Not Foolproof • Countrywide Warns Millions of Data Breach • Thieves Steal AT&T Laptop with Employee Data • Report: Data Breach Disclosure Laws Don't Affect Identity Theft • Patient Information Exposed in Data Breach at Walter Reed • Supermarket Chain Reports Data Breach • Report: Feds Still Not Doing Enough To Secure Data • Data Thieves Hit Georgetown University Students, Faculty • 800,000 Job Seekers At Risk In Gap Data Breach • TJX Data Breach Settlement Has Strings Attached • More ...

The measure would require data brokers and others covered by the law to develop, implement, and maintain an effective information security program to protect sensitive information. The safeguards include encryption, truncation, and other security measures currently available or under development.

The law would also require data brokers to immediate report security breaches compromising 1,000 or more consumers to federal officials and consumer agencies. Currently there is no federal requirement in that regard, and state laws vary. California requires notification but most other states do not.

While the proposed law fills several glaring gaps in data security, some consumer groups claim it doesn’t go far enough, and have expressed concern about intense lobbying by industry groups.

Consumers Union charges industry lobbyists are fighting to block a new right for consumers to freeze access to credit files, stricter rules regarding data security, mandatory notices of all security breaches, and the ability of states to provide stronger identity theft protections.

"If lobbyists working for big financial companies and the data broker industry get their way, consumers may be left in the dark when sensitive information about them is lost or stolen due to lax security," said Consumer Union’s Susanna Montezemolo.

"Consumers are counting on Congress to resist pressure from industry groups and provide meaningful protection against the growing threat of identity theft."

Among the protections consumer groups say they want to see in the bill are stricter data security rules, special protection for Society Security numbers, and the right of all consumers to freeze their credit files, preventing anyone from looking at them.

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