Senator Cantwell's Statement (as prepared) of the Judiciary subcommittee on Technology, Terrorism and Government Information hearing on "Identity Theft: Restoring your good name"
I want to thank Senator Feinstein for calling this hearing today and to commend Senators Feinstein and Kyl for their leadership in calling attention to the problem of identity theft and sponsoring legislation to fix it.
I also want to welcome Attorney General Gregoire from my home state of Washington. Her leadership in the State of Washington has been instrumental in fighting identity theft.
With over 500,000 victims last year alone, identity theft is the fastest growing crime in America. One in five American families has been victimized by identity theft. This simple fact alone underscores why Senators Kyl, Feinstein, and I have each introduced legislation to help prevent identity theft, and why we are looking forward to hearing the testimony today.
My bill, based on Washington state law, puts identity theft victims' rights first by empowering them to reclaim their identity. It also makes a common-sense revision to the statue of limitations on victims' ability to sue in identity theft cases so that the clock starts ticking when the victim learns of the misrepresentation, not when it occurs. Finally, it increases information flow among local, state, and federal agencies fighting identity theft, especially when the theft may be related to terrorism. Today, in this country, victims of identity theft must become their own private investigators to clear their names, and typically they do so without the help and information they need. That's why my bill requires businesses to give victims of identity theft the records they need to take back their good name. We already require this in Washington and California. Now we need to take this good idea to the national level and make it work on behalf of many others.
When your TV is stolen, you know it was taken from your living room. But when your identity is stolen, it could be stolen from anywhere. A consumer shopping online in Seattle could be purchasing golf shoes from a manufacturer in San Diego, and have her ID stolen by a hacker in Washington, DC. The implication is crystal clear: we need a stronger federal role in protecting consumers from identity theft.
This legislation also restores a sensible rule on the limits on a consumer's right to sue under the Fair Credit Reporting Act. Late last year, the Supreme Court ruled that a California woman, a victim of identity theft, couldn't sue a credit reporting agency because she filed her case more than two years after that agency had reported to others fraudulent information about her. She, however, didn't even find out about the agencies actions until long after information was reported.
According to Equifax's Web site, identity theft is discovered on average 14 months after the crime and it takes a business an average of 18 months to resolve a claim of fraud based on identity theft. In light of these facts, a two-year statute of limitation essentially forces consumers to sue before businesses have even figured out whether a crime has taken place.
My legislation makes sure common sense prevails, ensuring that the clock on the statute of limitations doesn't begin ticking until victims know that they have been harmed.
Finally, with the war on terrorism and concern about the ability of terrorists to steal visas and other identification, we are painfully aware that identity theft can threaten more than our pocket books. My bill requires the federal coordinating committee monitoring federal identity theft enforcement to find ways the federal government can best help state and local law enforcement address identity theft, especially when the identity theft may be related to terrorism. By giving consumers and law enforcement additional tools to fight identity theft, this bill will make it harder for terrorists to steal identities to hide their true identity.
Before we begin testimony, I want to thank Linda Foley, who has been a tireless advocate for identity theft victims as the driving force behind the Identity Theft Resource Center and building support for my legislation. I also appreciate the support of Mr. Cannon's Fraternal Order of Police, the Consumer's Union, the Police Executive Research Forum, the Privacy Rights Clearinghouse, and U.S. Public Interest Research Group for this legislation.
I look forward to hearing today's testimony.
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