Massive "Identity Theft" Raises Concern About Natl "ID" Card Proposal: Legislator Group Calls for Natl "ID" A recipe for Disaster

11/26/2002

From: Bob Adams of the American Legislative Exchange Council, 202-466-3800

WASHINGTON, Nov. 26 -- In the wake of a massive "identity theft" ring wrecking havoc on the personal finances of over 30,000 people, a national state legislator group calls a proposal for a national "ID" card "a recipe for disaster."

The American Association of Motor Vehicle Administrators (AAMVA) proposes the measure, rushed on to the scene following the attacks of September 11. "Identity theft is a vicious crime of exponential proportions," said Michael Flynn, ALEC's Director of Policy and Legislation. "But centralizing the personal information and identities of every American in one electronic database is a recipe for disaster."

As one alternative to a national "ID" card, the American Legislative Exchange Council (ALEC), the nation's largest bipartisan, individual membership organization of state legislators, suggests a model bill entitled The Personal Information Security Act, as one solution to the growing crime of identity theft.

"Victims of identity theft ought to have a right to clear their good names and credit in the most expeditious way possible," said Flynn. "The Personal Information Security Act is one step in that direction."

The Personal Information Security Act provides tough penalties for those convicted of the offense of identity theft or fraud. It also creates an identity theft bureau in a state law enforcement agency and an identity theft division in the office of the state attorney general to coordinate the investigation, apprehension, and prosecution of identity theft offenders. Moreover, the Act provides a central clearinghouse for victims of identity theft to clear their personal records.

According to the California Public Interest Research Group (CALPIRG) and the Privacy Rights Clearing House, victims of identity theft spend an average of 175 hours and $808 in out-of-pocket costs (not including attorney fees) to fix their wrecked credit problem. It typically takes 14 months before a victim discovers identity theft; then it can take years to resolve.

Currently, several states have some form of identity theft law on the books. These laws, however, vary greatly in their form and scope as to how identification theft is defined and punished. ALEC's Model Legislation draws from many of the best practices employed across the country. It offers states, local law-enforcement officials, and law-abiding citizens a tough, no-nonsense measure that punishes criminals who commit identity theft and supports those who were the victims.

An independent study in 1999, commissioned by Image Data LLC, found that approximately one out of every five Americans are victimized by identity theft. Moreover, the Federal Trade Commission has declared identity theft as the fastest growing crime, increasing by 30 to 40 percent each year. Estimates suggest that more than 700,000 people will become victims of identity theft in 2001 alone.

------ For more information contact Bob Adams at 202-466-3800.

Bob Adams, The American Legislative Exchange Council, 910 17th Street, NW, Fifth Floor Washington, DC 20006; Phone: 202-466-3800, Fax: 202-466-3800; www.ALEC.org