06.04.04

Cantwell Legislation Giving Consumers and Law Enforcement Important New Tool for Combating Identity Theft Takes Effect Today

WASHINGTON, D.C. - Today consumers and law enforcement gain a new tool to fight identity theft as an important provision of Senator Maria Cantwell's (D-WA) identity theft legislation takes effect. The provision allows victims of identity theft, and those they "deputize" in law enforcement, to receive records related to their identity theft directly from businesses. This will simplify and speed up law enforcement investigations and will enhance the ability of authorities to solve cases of identity theft and related crimes across state lines.

"Starting today, we've got one more weapon in the arsenal to fight identity theft," Cantwell said. "This national legislation will help protect consumers from becoming victims of identity theft and it will help victims of identity theft reclaim their identity. Just as importantly, it gives law enforcement another tool to bring identity thieves to justice."

Identity theft is the fastest growing white-collar crime in the country. According to the Federal Trade Commission, Washington State ranked 10 th nationally in 2003 in per capita reports of identity theft. According to the Seattle Police Department, 936 cases were reported in Seattle in 2003, with one of these cases affecting over two-hundred victims. On a daily basis, the rate of identity theft cases in Seattle is up 18 percent this year alone. In Snohomish County, 586 cases were reported in 2003 according to the Snohomish County Sheriff's office. In 2004, Snohomish County the number of identity theft crimes has grown more than 50 percent. Recently, a report by the Identity Theft Research Center observed that there may be as many seven to ten million victims of identity theft nationwide.

Identity theft victims often find themselves as the only ‘detective' on the beat trying to solve the crime. Inevitably, they need access to the business records of frauds perpetrated in their name to solve the crime. Unfortunately, too often victims find that businesses turn over relevant records to their identity theft slowly, if at all. Cantwell's legislation addresses both problems by requiring businesses to cooperate within thirty days and by requiring them to supply records to law enforcement, if requested by the victim.

"Senator Cantwell's legislation greatly enhances the Federal Trade Commission's efforts to protect consumers from identity theft," said FTC Commissioner Pamela Jones Harbour. "By establishing a process to guarantee that victims of identity theft and law enforcement can obtain the records they need to crack identity theft cases, Senator Cantwell's legislation will give us additional tools to fight this crime."

"Senator Cantwell's legislation gives those of us in law enforcement a powerful new tool in fighting identity theft," said Wallace Shields, Special Agent in Charge of the Seattle Field Office District of the U.S. Secret Service. "It addresses one of our biggest challenges: getting the records we need from businesses quickly enough to solve cases of identity theft. This will be particularly helpful to our partners in state and local law enforcement, most frequently on the front lines fighting identity theft."

"Senator Cantwell's legislation will help consumers breathe easier because law enforcement has new weapon in the war on identity theft," said Jenni D'Avis, the Washington State Coordinator for the Identity Theft Resource Center. "As a victim of identity theft, I know that Cantwell's bill requiring businesses to quickly hand over the records authorities need to apprehend identity thieves will go a long way in protecting consumers."

Cantwell's legislation was signed into law in December of 2003 as a part of the Fair and Accurate Credit Transactions Act (the FACT Act). The Federal Trade Commission is the agency responsible for implementing the law.

In Brief: How Senator Cantwell's Legislation Works:

Creates consistent national mechanism for victims to prove their identity: Cantwell's legislation provides a consistent national mechanism for a consumer to establish he or she is a victim of identity theft by producing a standardized notarized FTC affidavit (or other affidavit acceptable to the business), government-issued identification, and a copy of a police report.

Requires businesses to produce relevant records to identity theft victims within 30 days of request at no charge: Cantwell's legislation requires that when a victim of identity theft requests documents from a business that has records related to a fraud based on an identity theft (such applications for credit, sales receipts, and other records), the business must provide copies of these records to the victim within 30 days of the victim's request at no charge. The victim must establish their identity by using the mechanism outlined above, sufficiently to give the business confidence in the identity of the person requesting the records.

Victims can "deputize" law enforcement to act as their agent in obtaining relevant records from businesses: For the first time, the law allows victims to designate local law enforcement as their agent in obtaining these records. This will improve the speed and effectiveness of investigation of identity theft crimes and other criminal activity. Under the Cantwell's legislation, a victim can "deputize" law enforcement to take possession of the business records associated with the identity theft directly. This provision will help law enforcement, particularly local law enforcement, where businesses have been reluctant to release business records in a time frame that is helpful to law enforcement investigations. For example, this will particularly be helpful to law enforcement investigating criminal Methamphetamine rings, many of which have been financing their activities with identity theft crimes.

Cantwell's legislation gives victims and law enforcement the ability to get out of state records: Cantwell's legislation also gives victims the ability to obtain records from businesses outside their own state. This is critically important given the interstate nature of identity theft.