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EDITORIAL: Give public powers to combat ID theft
(Wisconsin State Journal, The (KRT) Via Thomson Dialog NewsEdge)Jun. 9--The U.S. House of Representatives is preparing legislation to combat identity theft. You would think that would be good news for consumers.
But there is a risk that it will turn out to be bad news for Wisconsin consumers.
The risk lies in a House bill that proposes to supercede strong state laws, including Wisconsin's, with weaker federal language.
In the wake of a 52 percent increase in identity theft complaints nationwide from 2002 to 2004, and worry over a recent security breach involving data on more than 26 million military veterans, a step backward in protections would be unacceptable.
Wisconsin's congressional delegation should make sure that doesn't happen. Wisconsin consumers deserve to benefit from our stronger state law.
At stake for Wisconsin is the state's new law, scheduled to take effect Jan. 1, allowing consumers to freeze out access to their credit files. By freezing credit files, a consumer can stop a crook from open ing fraudulent accounts in the consumer's name by using stolen identity information.
A bill that may be considered in the House next week would also permit freezes on credit files, but only after a consumer becomes a victim of identity theft. Talk about closing the barn door after the horse is gone!
That provision is clearly inadequate. If it becomes federal law, it would replace Wisconsin law, depriving consumers of a valuable tool to combat identity theft.
The same bill, from the House Financial Services Committee, poses another risk for consumers. If consumers are to react to potential identity theft problems, they need to know when security breaches occur in personal data files kept by businesses. But the committee's bill would impose an almost useless notification requirement.
The requirement would allow businesses to decide whether consumers need to know about a security breach. And it would prohibit states from enacting tougher legislation.
Fortunately, the House has a far better alternative. A bill from the Energy and Commerce Committee would require businesses to notify consumers whenever security of personal data has been breached -- unless the business can demonstrate that there is no risk of harm.
The alternative bill also would allow states like Wisconsin to retain their strong credit file freeze laws.
If federal legislation is to be of meaningful help to consumers, it cannot weaken state laws. The House should reject provisions that would remove powers consumers already have to combat identity theft.
For information on what you can do to com bat ID theft, consult www.datcp.state.wi.us/privacy/ safeguarding_info.jsp or www.usdoj.gov/criminal/ fraud/idtheft.html.
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