Identity Theft

Identity theft is one of the most pervasive and rapidly growing criminal activities in America. It is also one of the most devastating crimes for victims. One of the most common forms of identity theft is credit and debit card fraud. Credit card fraud not only exposes private payment information to thieves, but possibly the cardholder's name, address, and social security number. A 2003 survey from the Identity Theft Resource Center found that approximately seven million people were victims of identity theft over the previous 12 months. 73% of respondents indicated that the theft of their identity involved the unauthorized use of their credit card information, while only 15% of these victims find out about the theft of their credit card data through proactive action taken by a business. Unauthorized access to credit information often results in a wide array of fraudulent activity and consumer debt, including new and unauthorized credit card accounts, bank accounts, loans, mortgages, and more. Consumers may find themselves in unauthorized debt up to hundreds of thousands dollars before they ever realize there is a problem.

Given new and increasingly advanced developments in security technology each year, consumers may be excused for believing that their private payment information is safe and secure in the hands of giant corporations and established, successful retailers. This is a dangerous assumption. Identity theft can occur anywhere and at any time. In April, 2011, an external breach of the Sony Corporation's intricate Playstation Network security system led to a weeklong outage for users. This breach exposed the identity information and credit card data of 77 million consumers. An equally devastating breach o...

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... it is a troublesome fact that the more advanced and pervasive ePayment technology becomes, the greater the risk that personal data may be exposed fraudulent activity at all corporate, technological, and societal levels. It is precisely for this reason that security freezes are such an important option for consumers. Yet as the law currently stands, consumers must wade through an inconsistent and oftentimes confusing set of regulations to freeze their financial and personal information -- regulations that vary by state.

Federal legislation that preempts state law would make security freeze tools easier to understand and more readily accessible for consumers. However, until such federal legislation becomes law, the public must do its best to navigate through various and sometimes conflicting requirements imposed by the credit bureaus as well as the states.