Legislation helps crack down on identity theft

Assemblymember Susan John (D-Rochester) sponsored legislation (A.4939) that the Assembly recently passed making identity theft a crime punishable by up to seven years in prison, and giving victims the opportunity to seek legal recourse.

Assemblymember John noted that the Senate also passed the measure and called on the governor to swiftly sign it into law. "Over 750,000 cases of identity theft occur in the United States each year - including 40,000 reported cases in New York. This crime costs billions in damages to both consumers and the financial industry," said John.

Identity theft occurs when someone uses personal identification information about another individual - including a social security number, name, or credit card numbers - to apply for credit, open bank accounts, or make unauthorized purchases. Provisions of the legislation make identity theft a crime by providing penalties for the unlawful, unauthorized use of identifying information. Under this legislation, individuals who commit identity theft would be eligible for up to seven years in prison. The measure would also make victims of identity theft who incur costs or losses due to adverse information being transmitted to a credit reporting agency eligible for restitution for financial losses. Additionally, victims will be able to pursue damages in a civil action.

"Currently, financial institutions, such as a credit card company or bank, are legally considered the sole victims of identity theft - leaving the consumer with ruined credit and no means of rebuilding their financial reputation," said John. "However, this legislation provides recourse for both the credit institution and the card holder."

Assemblymember John noted that consumers can protect themselves from identity theft by not giving out personal identification information - such as their maiden name, mother's maiden name, or social security number; keeping items with personal information in a safe place; and destroying ATM and bank receipts. They should also check their credit report annually - ensuring they have not fallen victim to credit card fraud.