02.16.05

Cantwell Urges FBI to Help Victims of Massive Identity Theft Scam

As many as 100,000 Americans may be victimsExperts estimate ID theft costs Americans $750 million a year;Cantwell law will help consumers restore their credit

WASHINGTON, D.C. – U.S. Senator Maria Cantwell (D-WA) today asked FBI Director Robert Mueller to ensure sufficient resources are devoted to the investigation of a newly discovered identity theft ring, which may affect as many as 100,000 American consumers nation-wide. Cantwell also urged the FBI to cooperate with the Federal Trade Commission (FTC), to make sure the victims of this fraud are given the assistance necessary to reclaim their identities and repair their damaged credit. Under Cantwell-authored legislation enacted in 2003, consumers and law enforcement officials can get expedited access to business records that will help ID theft victims restore their credit.

"Identity theft is the fastest growing crime in the nation," Cantwell said. "The millions of Americans that are affected feel like they're victims twice—once when their identity is stolen and again when they struggle to clear their good names. Given the apparent scope of this identity theft ring, federal authorities need to provide as much assistance as possible to help these consumers cut through the red tape. And we need to make sure law enforcement has the resources they need to track down the perpetrators of this fraud."

The Los Angeles Times reported today that the FBI is assisting local law enforcement in the investigation of an identity theft ring, in which as many as 100,000 consumers may have had their credit reports, Social Security numbers and other personal information stolen. The company from which the information was stolen has begun notifying about 35,000 California residents that their personal information may have been compromised. However, the identity theft ring may impact consumers nation-wide.

In December 2003, President Bush signed into law Cantwell's legislation to speed up law enforcement investigations of ID theft, as part of the Fair Credit Reporting Act. By giving victims and those they "deputize" in law enforcement easier access to important records, the law--which just took effect last June-- also enhances the ability of authorities to solve cases of identity theft across state lines.

In 2004, Washington state ranked eighth in the nation for identity theft crimes – up from tenth the year before. The number of victims in Washington state climbed about 20 percent in just one year.

The Secret Service estimates that consumers lose $745 million to the problem annually. In addition, studies estimates that by 2006 identity theft will cost financial institutions alone $8 billion per year.

The text of Sen. Cantwell's letter is below:

February 16, 2005

The Honorable Robert Mueller Director Federal Bureau of Investigation J. Edgar Hoover Building 935 Pennsylvania Avenue, N.W. Washington, D.C. 20535-0001

Dear Director Mueller:

Today's Los Angeles Times reports that the Federal Bureau of Investigation (FBI) is assisting local Los Angeles law enforcement in the investigation of alleged infiltration of the data holdings of ChoicePoint, Inc by a fraud ring. As you know, insurance companies, banks, law enforcement agencies, and many arms of the federal government use ChoicePoint's data services. The report states that the fraud ring may have obtained as many as 10,000 credit reports, containing personal information from at least 35,000 consumers, but that the ultimate number of affected consumers may reach as many as 100,000 in several states. I appreciate the actions already undertaken by the FBI, and write to request that you expeditiously direct additional resources to this investigation. Given the broad range of ChoicePoint users, from government to private businesses, and the scope of electronic commerce in the Pacific Northwest, the FBI should be looking on a regional basis to identify affected consumers in neighboring states like Washington, Oregon, Nevada and Arizona, and bring those responsible to justice.

In addition, I urge the FBI to work with the Federal Trade Commission (FTC) and make certain that consumers affected by fraud at ChoicePoint are aware of their legal rights under the Fair and Accurate Credit Transactions Act (the FACT Act). As the author of this December 2003 law, I feel it is important that the FBI do all it can to help victimized consumers repair their damaged credit while the necessary investigation and prosecution of the individuals responsible proceeds. Among the provisions of the law is a requirement for establishment of a consistent national mechanism for victims to prove their identity. Consumers are required to establish they are a victim of identity theft by producing a standardized notarized FTC affidavit, government-issued identification, and a copy of a police report. As the FBI is the federal agency investigating this matter, the agency should help provide a blanket report suitable for victims in the various states.

Finally, it would be helpful if the FBI clarified for affected citizens that the law allows victims to designate a law enforcement official or entity as their agent in obtaining these records. It is my hope that the federal government will assist victims of this alleged fraud ring in obtaining records from ChoicePoint.

Again, I appreciate your attention to this matter, and will be pleased to work with you to ensure that the FBI has the resources it needs to fully investigate this matter.

Sincerely,

Maria Cantwell

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