Janet Wu Reports On Identity
Theft
NewsCenter 5's Janet Wu
reported that identity theft totaled $50 billion nationwide in 2004. So far,
11 states have tightened their laws restricting credit agencies from releasing
information and giving consumers more control of their medical and financial
data. Beacon Hill said it wants to do the same.
In a crowded public hearing
room, three consumers told their stories of being victims of identity theft.
One man had preapproved credit cards stolen from his mailbox by one of his renters,
totaling $6,000. Another woman said a pet-sitter stole her identity with false
charges totaling $4,000.
Karen Leonard said someone
stole her identity and rang up $30,000 in fraudulent charges.
"I started getting
calls from creditors saying, 'You owe us $5,000 to a Sears account.' And I would
say, 'I don't have a Sears account.' This went on for probably three or four
months and I would ultimately hang up on them because I thought they were telemarketers
trying to get me to open these accounts. Then I started hearing from Home Depot
and a department store that we don't even have in the Northeast. Then I found
out that they have my Social Security number," said Leonard.
Among the proposals being
offered is letting consumers freeze their credit reports and allowing access
only with a security code; limiting the use of Social Security numbers and barring
their use on credit, school or military applications; requiring notification
of a security breach within five business days from the time it's detected.
"Just two days ago it was CVS where people's pharmaceutical records (were)
available on the Internet. The day before it was MasterCard. Last week it was
Lexis Nexus, Bank of America. It was, and often is, too many people getting
access to our personal data," said Sen. Jarrett Barrios.
Legislators said stealing
others' identities is easy because the laws are lax.
"A lot of things like
your name, Social Security number, your address, your date of birth -- that
information is not regulated under the Fair Credit Reporting Act and that information
ends up getting sold to online data marketing services," said Eric Bourassa,
of consumer advocacy group MASSPIRG.
Most lobbyists for the credit rating agencies and data collection agencies sat
quietly in the back row during the hearings. But one representative said they
do plan to try to water down many of the proposals.
"We're in the business of making money, but we are also in the business
of serving consumers because if we don't service consumers effectively, nobody
wins. Consumers don't get their needs met," said Eric Ellman, of the Consumer
Data Industry Association.
At private meetings behind closed doors, lobbyists argued that freezing one's
consumer credit report can make it difficult for legitimate consumers to get
emergency credit. But advocates claimed security codes can easily unlock those
reports for the right person and the right reason.
