Identity Theft Laws and How they Protect You
Identity theft is the highest rising crime in America. This statement alone begs the question; what is our government doing to protect us? The federal government has created several laws with the intent of reducing id theft. The Fair Credit Reporting Act (pdf) establishes the measure required for correcting mistakes on your credit report and ensures that only viable businesses will have access to your report. The Fair Credit Billing Act determines procedures for settling billing errors on credit accounts and limits the amount of money a consumer can be held liable for in cases of fraud. The Fair Debt Collection Practices Act deals with ensuring collection agencies use fair practices for gathering funds owed and keeps them from using deceptive techniques to collect money on past due accounts. The Electronic Funds Transfer Act protects consumers when using electronic means or debit cards and also limits the amount a victim of fraud can be held liable for. One of the main challenges that face lawmakers is creating laws that protect citizens from becoming victims while still giving them access to their own credit and information.
Where am I most likely to be a victim of identity theft?
The three states with the highest rates of identity theft are Nevada, California and Arizona. One might think that this is a product of lax laws, yet California is considered the leader in breach notification laws. It is mainly an issue of demographic. Arizona is the highest, largely due to a high population of elderly that may not be as aware of identity theft tactics. There are also a high number of meth users in Arizona. Drug use and id fraud appear to go hand in hand. Identity theft is an easy and non-violent way to support a drug addiction. Technology has made it much easier for individuals to create fake documents, access credit with limited personal interaction and opened greater doors for perpetrating their crimes.
As of Nov. 1, 2007, you can have your credit frozen no matter which state you lived in (previously, this was only allowed on a state-by-state basis.) For $10 you can place a 90 day freeze on your credit through the credit reporting agencies. If you need to access your own credit, you can lift the freeze for another $10 or for $12 you can lift the freeze for only the one business you are seeking a transaction with. When you are finished, you can replace the freeze for another $10. This is a strong deterrent, but can become pricey and inconvenient to keep up.
The criminal codes for identity theft differ in each state. The punishments differ across states also. Identity theft can be prosecuted as a misdemeanor or a felony; usually depending on the amount of money involved or the extent of the perpetrators criminal history. A misdemeanor charge usually ends with probation, fines and often restitution costs (rarely does the victim see this money however). A felony charge usually comes with jail time (1 to 15 years, depending on extent of crime). One of the challenges facing the justice system is meting out punishments that override the easiness of the crime and the low rate of being caught!
