Protecting Consumers From Identity Theft: Real Policy Solutions To Protect Consumers From Sloppy Bank And Other Industry Practices
Executive Summary
Identity theft represents one of the most perilous hidden dangers to an individual's financial well being. The taking of another's personal information—social security number, name or date of birth—for the purpose of assuming the victim's identity to commit fraud, is the fastest growing white collar crime in the country.
Information has become big business. Whether buying the week's groceries, calling family across the state, ordering an airplane ticket or going to the doctor, companies are collecting information about their customers. These records can include not only the consumer's address and social security number, but also their account balances, shopping habits and much more. Yet consumers have no control over what is done with that information.
In 2005 at least 53 million consumers have been placed at risk of identity theft or fraud due to sloppy practices at banks, department stores, data brokers, and even universities and state agencies.
Roughly 10 million Americans a year become victims of identity theft according to the FTC. Though figures vary, over 11,000 Illinoisans reported that they had become victims this past year. With an estimated 81% of victims not reporting the crime, a more realistic figure would be over 46,000 Illinois victims, each year.
The federal government has shown no leadership in protecting consumers from identity theft. It is up to the states to give consumers the protection they need from the sloppy practices of companies that hold customers financial DNA. This paper outlines the problems of identity theft, what other states have done about those problems and what Illinois can do to become the national leader in identity protection.
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