Senator Maria Cantwell: Fighting Identity Theft

VICTIM'S STORIES

The stories of three Washington state residents who were victimized by identity thieves illustrate the impact of this crime, and why federal legislation is necessary to help victims restore their credit ratings and good names.

Debbie Caler. In the fall of 2000, Vancouver, Washington, resident Debbie Caler's purse was stolen. She immediately called her banks and credit card companies and canceled her cards. Although she took that prudent and correct step, the thief had also stolen her identity - her driver's license was in her purse.

Using her ID, the thief was able to obtain Debbie's Social Security number. Then the thief opened new bank accounts, applied for credit cards, and bought a car. Because the thief and her accomplices set up new phone numbers and addresses, Debbie had no idea what was happening. Later, the thief even used Debbie's identity to bail a friend out of jail. When the thief failed to repay the bail bondsman, he showed up at the Calers' home and intimidated their son.

When Debbie realized her identity had been stolen, and that the thief was fraudulently using her good name to run up huge bills, she called the three credit bureaus and had a fraud alert put on her accounts. The theft has had a devastating effect on Debbie's credit rating. She used to have a "0" credit rating - the highest possible; today, she has a "5." She is still working to clear her credit record.

In fact, Debbie is still learning the extent of the damage. Last month - three years after her purse was stolen - she went to the library to check out a book and discovered that the thief had racked up $300 in fines at the library!

Debbie notes with sadness that in addition to costing her time and money to clean up the mess, the lingering effects of the crime continue to affect what she and her family are able to do. She and her husband were turned down for refinancing on their home because of her poor credit rating. Debbie is unable to open new credit accounts, and has had to transfer all of her account to her husband's name.

Jenni D'Avis. Jenni D'Avis of Mill Creek, Washington, had her Social Security number stolen when a thief took her mail and found the number listed on a letter from her community college. The criminal used the number to obtain a state identification card, and in turn used that to get credit. In just 23 days, the thief ran up $100,000 in bad debt � all in Jenni's name. Once she became aware of the problem, she had to become a "Nancy Drew," and track down information. Businesses were reluctant to give her the information she needed to determine the extent of the problem and clear her name and credit record. She is still repairing the damage.

Sadly, Jenni's story is not unique. Victims of identity theft have difficulty restoring their credit and regaining control of their identity, in part, because they have no simple means to show creditors and credit reporting agencies that they are who they say they are. In order to prove fraud, a victim often needs copies of creditors records, such as applications and information, and records from the companies the identity thief did business with. Ironically, victims have difficulty obtaining these business records because the victim's personally identifying information does not match the information on file with the business.

My bill fixes that problem. The Identity Theft Victims Assistance Act creates a standardized national process for a person to establish he or she is a victim of identity theft for purposes of tracing fraudulent credit transactions and obtaining the evidence to repair them. It requires the Federal Trade Commission to make available a simple certificate that, when notarized, provides certainty to businesses and financial institutions that the person is who they claim to be, is a victim of identity theft, and has filed claims with both local law enforcement and the FTC. With this document in hand, the victim can then obtain from businesses the records they need.

Michael Calip. In the case of Michael Calip of Centralia, Washington, identity thieves not only ran up $60,000 in debts, they also committed crimes using his name � trashing his credit record and creating a criminal record. Michael tracked the thieves to Wyoming, but had difficulty convincing local authorities there to pursue his case.

The need for a national system is readily apparent, as identity theft is increasingly a crime that crosses state lines. One of the greatest challenges identity theft presents to law enforcement is that a stolen identity is used to create false identities in many different localities in different states. Although identity theft is a federal crime, most often, state and local law enforcement agencies are responsible for investigating and prosecuting the crimes. Yet law enforcement has yet to fully recognize the serious nature of the problem or to develop a coordinated investigative strategy.

My bill for the first time also permits a victim to designate the investigating agency, either local or state law enforcement or federal investigators, to act as their agents in obtaining evidence of identity theft. This both eases the burden on the victim and aids police in investigating suspected identity theft rings. In addition it requires the existing Identity Theft Coordinating Committee to consult with state and local law enforcement agencies.

Back to Fighting Identity Theft