Identity Theft Laws in the U.S.
Law enforcement is faced with significant demands with the growing cases of identity theft, but their resources are limited in fighting ID theft. Enforcement agencies all across our country have been forming task forces and identity theft laws to address the severe problem. The FBI currently has 21 separate task forces dedicated to more than 80 different types of financial crimes and identity theft. The FBI also dedicates a significant amount of analytical resources in combating ID theft, referring these investigation cases to law enforcement, proactively targeting ID thieves in organized groups.
Identity fraud and identity theft law task forces, with their stronger efforts, have achieved significant success in cracking down on the criminals in cities such as Los Angeles, Detroit, Salt Lake City, and Chicago. In 2005, the Detroit task force on identity fraud successfully prosecuted many cases, handing out 23 search and arrest warrants, resulting in 37 arrests and 11 indictments.
The Most Protective States Against Identity Theft
Almost all US states have identity theft laws – however, a few states, such as Colorado and Vermont, do not have a criminal code for ID theft in place.
Several of the states with criminal codes for ID theft have “Credit Information Blocking Laws.” Alabama has identity theft laws that require credit reporting agencies to block false information from the victim’s record. Residents of California and Colorado are protected by privacy laws, while Idaho and Washington have ID theft laws that block inaccurate information provided by a police report.
California is the only state that has a privacy protection criminal code for ID theft prevention, and only Rhode Island has enacted a Social Security law dictating that organizations cannot mandate SSNs, except in certain circumstances.
Credit Freezes
A security credit freeze allows consumers to stop thieves from using their names in obtaining credit. With a security credit freeze, no one is allowed access to the credit file, unless the consumer enters a PIN authorizing temporary access. This stops thieves dead in their tracks – no one, not even banks or credit card companies, can access the credit report. Many states have freeze laws that give consumers an important weapon against identity theft, but some states do not. The eleven states that do NOT have freeze laws include Alabama, Alaska, Arizona, Georgia, Idaho, Iowa, Michigan, Missouri, Ohio, South Carolina, and Virginia. The states with a freeze law in place, but limited to only ID theft victims, are Arkansas, Kansas, South Dakota and Mississippi.
Recently, all three credit reporting bureaus have announced that if you live in a state without a freeze law, you can still freeze your credit report, but for a fee.
Where Are the Worst States with Identity Theft?
According to the FTC Consumer Sentinel, statistics show that Arizona, California, Nevada, and Florida are at the top of the list for stolen identities, as these states have a significant number of government cases involving identity theft law. ID thieves tend to target more populated cities, as they can blend seamlessly into the crowd. In addition, with a higher population, cities have more dumpsters with personal information in them, thus attracting more ID thieves. Recent persecutions based upon identity theft law in these states illustrate the dangers of having your identity stolen:
- California: A woman stole a social security card number and used it to apply for credit, putting tens of thousands of dollars onto the credit card. When the maximum credit limits were reached, she then filed bankruptcy in the victim’s name.
- California: A man indicted after pleading guilty was sentenced 27 years in prison for gaining bank information about policy holders of an insurance company. He used the stolen information to deposit counterfeit checks in the amount of $764,000.
- California: Two defendants pleaded guilty to identity theft and bank fraud for a scheme to use false identification to open new bank accounts. Stolen US treasury checks from mail had been deposited and withdrawal attempts were made.
- Florida: A thief was indicted for obtaining personal information from websites and using stolen identities in car loan applications. Social Security numbers, addresses and names were pulled from the website and resulted in a bank fraud charge.
- Florida: An indicted woman pleaded guilty to the federal charges of obtaining, in the victim’s name, a fraudulent driver’s license and using it to withdraw over $13,000 from the bank account of the victim. She also obtained credit cards from a department store with the name of the victim and racked up about $4,000 in charges.
Although identity theft is not a new crime, it has turned into a very serious threat to every consumer, as well as businesses and financial institutions. Companies specializing in identity theft services have sprung up to meet the demand. The Federal Trade Commission, consumer groups, and law enforcement organizations agree that ID theft drains billions of dollars in the US every year.
