Victims of identity theft
currently spend an average of 600 hours clearing their names, up from 175 hours
in 2000, according to a new study of identity theft co-released today by CoPIRG
and the Identity Theft Resource Center. The study comes as Congress is finalizing
industry-backed efforts to roll back state authority to fight identity theft.
The report, “Identity Theft 2003: The Aftermath,” is a detailed survey
of 173 identity theft victims conducted by the San Diego-based Identity Theft
Resource Center.
"Identity theft victims
are spending more time and money than ever clearing their names due to sloppy
bank and credit bureau practices, so why is Congress supporting bank demands
to weaken state authority to protect victims?” said Ben Davis, municipal
advocate for CoPIRG.
The report updates findings
of a similar survey, “Nowhere To Turn,” conducted by CoPIRG and the
Privacy Rights Clearinghouse in 2000. Among its highlights:
• Victims now spend an average
of 600 hours recovering from this crime, often over a period of years. Three
years ago “Nowhere To Turn” found that the average was 175-200 hours
of time, an increase of more than 300 percent.
• While victims are finding
out about the crime more quickly, it is taking far longer than ever before to
clear their records and recover from the situation.
• Today victims spend an
average of $1,400 in out-of-pocket expenses, an increase of 85 percent from $808 in
2000.
• Approximately 85 percent of victims
found out about the crime due to an adverse situation - denied credit or employment,
notification by police or collection agencies, receipt of credit cards or bills
never ordered, etc.
CoPIRG is calling for a
partnership between states and Congress to fight identity theft and credit report
inaccuracies. They're urging Congress to establish a new federal floor of identity
theft protections, while allowing states to enact stronger laws. The report
comes as Congress is considering amendments to the Fair Credit Reporting Act
(FCRA) to permanently extend temporary 1996 limits on state authority to enact
certain credit and privacy laws. Under legislation already enacted by the House
of Representatives, HR 2622, the current limits on state authority would also
be expanded to preempt, or override, stronger state identity theft laws. This
week, the U.S. Senate Banking Committee passed a similar bill.
