Seven Solutions: A Legislative Handbook Of Identity Theft Solutions Available to Colorado Lawmakers
2/18/2005
Executive Summary
Identity theft is a growing
crisis in Colorado. During the past three years, the number of Colorado consumers
who have filed identity theft complaints with the Federal Trade Commission (FTC)
has increased by more than 65 percent. Colorado now has the fifth highest per
capita rate of identity theft, up from the eleventh highest in 2002.
Easy access to consumers'
confidential identifying information, including social security numbers, has
contributed to this epidemic. Credit card companies, merchants, credit bureaus
and other businesses do not adequately safeguard consumers' private financial
information, making it relatively easy for thieves to steal this data and use
it to take out new credit or to rack up charges on existing accounts.
While Colorado has taken
some steps to protect consumers, more needs to be done to prevent the crime
and give victims the ability to clear their names. CoPIRG is calling on the
legislature to take the following seven steps to help stop identity theft in
Colorado:
1. Increase criminal penalties
for identity theft by making the crime a felony in Colorado.
2. Give consumers the right
to freeze thieves out of their credit files. Allow consumers to block access
to their credit reports and scores until they affirmatively unlock their credit
files by contacting the credit bureaus and providing a security code.
3. Restrict the invasion
of financial privacy by eliminating the "credit header" loophole that allows
credit bureaus to share consumers' personal identifying information, including
social security numbers, to marketers and others.
4. Provide consumers with
low-cost monthly access to their credit reports so they may monitor them for
fraudulent activity.
5. Require businesses to
notify their customers when a security breach puts them at risk of identity
theft.
6. Prohibit businesses from
using consumers' social security numbers on identification cards.
7. Require businesses to
meet minimum standards for the proper disposal of documents that contain consumers'
private financial information, and extend this standard to any third-party vendors
that businesses use to destroy records.
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