Identity theft is the most common consumer fraud complaint and the fastest growing financial crime, affecting approximately 10 million Americans each year. In 2007, New York ranked sixth in the country in per capita identity theft stories and complaints, according to Identity Theft Data Clearinghouse of the Federal Trade Commission (FTC).
The bill will aide in identity theft prevention by restricting the ability of employers to use an employee's personal information, including prohibitions against posting or displaying more than the last four digits of an employee's social security number or placing social security numbers in files with open access. This will provide important confidentiality safeguards for employees. Additionally, the bill outlaws the possession of "skimmer" devices - which can obtain personal identifying information from credit cards - under circumstances where there is intent to use the device to commit identity theft.
Victims of identity theft will now be able to seek assistance from the Consumer Protection Board’s (CPB) Identity Theft Prevention and Mitigation Program. The program will assist victims to undo the damage that identity theft has done to their financial and credit history. The bill enhances aspects of the security freeze law – a 2006 law that gives consumers the choice to "freeze" or lock access to their credit file against anyone trying to open up a new account or to get new credit in their name – and extends important confidentiality protections to public entities, preventing the intentional communication of social security numbers to the public.
Finally, the bill enables victims of identity theft to obtain restitution equal to the value of the time they spend fixing the damage of identity theft. According to one study, it takes identity theft victims as much as 330 hours to fix the damage done by identity theft. For the first time, these victims will be able to be compensated for their lost time. Governor Paterson noted that victims of identity theft face an arduous task in repairing their financial records, credit rating, and wellbeing. They require assistance and intervention to address their particular needs and navigate various public and private systems.
Senate Majority Leader Joseph L. Bruno said: “I want to commend Senator Charles Fuschillo for his leadership in addressing the crime of identity theft and for working with the Governor and Assembly to get real results, not only to protect consumers but to help them get more assistance when they are victimized. Identity theft is a very personal and damaging crime and this comprehensive legislation will help strengthen our laws to stop criminals from stealing people’s information and help victims restore their credit.”
Assembly Speaker Sheldon Silver said: “Identity theft is a serious problem that can have an effect on anyone. This legislation will strengthen New York State’s identity theft laws by protecting individuals from the misuse of their personal information, and it is a great step forward in safeguarding sensitive information. It will give important controls back to identity theft victims and help all consumers with a range of other measures to curb identity theft. I applaud Governor Paterson for addressing an issue that will protect all New Yorkers.”
Senate Minority Leader Malcolm A. Smith said: "With Internet shopping, buying gas and food, we are now using our credit cards to purchase just about everything. It is essential that we have strong privacy protection policies and laws in place. Governor Paterson should be commended for putting in place legislation that will make sure that sensitive information is protected from theft. But most important, the governor has made sure with this legislation will allow New York consumers to continue using their credit cards with the confidence of knowing they are protected."
