Can U.S. Laws Protect You or Even Deter Identity Theft? Legal Review

The dramatic rise in the number of cases of identity theft has many Americans wondering how well our laws protect us. It has been difficult for the criminal justice system to keep pace with this increasingly common crime, fueling the feeling of both perpetrators and victims that identity theft carries a low risk of being caught and punished.

Recent designation of ID theft as a crime

Currently there are laws at both the state and federal levels aimed at penalizing identity thieves and compensating their victims, but they are fairly recent. In 1996, Arizona passed a state law recognizing identity theft as a crime; it was the first state to do so. Other states have followed suit, so that by 2001 only Colorado and the District of Columbia had yet to institute identity theft laws.

State-level action against identity theft

Identity theft is usually persecuted at the state level because the amount of money involved is relatively small. However, there is a great deal of variation amongst the laws enacted by the individual states. Some states view identity theft as a felony, while others regard it as a misdemeanor. Some states stipulate that the victim must report the crime to the police in the jurisdiction where the theft occurred. State policies also differ on whether or not the police are required to take a report. Even the types of identity theft punishable by law vary among states.

Federal Identity theft laws

At the federal level, identity theft was recognized as a crime with the enactment of the Federal Theft and Assumption Assurance Act of 1998. This act established the Federal Trade Commission (FTC) as the government agency that would receive and handle complaints of identity theft, and would assist in educating the public about the nature of the crime. This law used the term “means of identification” which it defined as one’s name, social security number, date of birth, government-issued IDs such as driver’s licenses and passports, alien registration numbers, and tax and employer numbers.

Identity Theft Penalty Enhancement Act of 2004

Strengthened the Federal Theft and Assumption Assurance Act by increasing the penalties for identity theft that was part of more serous crimes such as terrorism or crimes involving weapons.

Fair Credit Reporting Act amendment of 2003

Addressed identity theft more directly, and to provide victims of identity theft with ways to work with credit agencies to repair histories damaged by thieves. Called the Fair and Accurate Federal Transactions Act, or FACTA for short, this law also set in place some preventative measures. For example, FACTA stipulates that businesses not print a customer’s entire credit card number on receipts. It also provided customers with the option of placing a fraud alert on their accounts in the event that they suspected criminal activity, and to obtain one free copy per year of their credit report.

How much these laws have done to decrease identity theft is debatable. At the very least, they have raised awareness of the prevalence and dangers of identity theft.