FROM THE OFFICE OF PUBLIC AFFAIRS

“The report issued today by the Federal Trade Commission gives vivid evidence of the serious national problem of identity theft.  It is the latest demonstration of the need for passing legislation this fall to fight this crime.  On June 30, 2003, Treasury Secretary John Snow outlined the Administration’s program to give important new tools to consumers and law enforcers.  The House of Representatives is poised to approve this package, and we are encouraged that the Senate will soon take up similar legislation.

“As the FTC survey shows, identity theft is a major and growing national problem, affecting as many as 10 million people during the last year.  The financial costs are alarming, with over $10,000 stolen in the average fraud, American businesses losing upwards of $50 billion, and the innocent victims spending $5 billion cleaning up the mess that others have created.

“The Administration has called for legislation that, among other provisions, would establish a national fraud alert system, improve the accuracy of credit reports, identify the tell tale signs—or red flags—to alert lenders so they can thwart identity theft attempts, and put more information in the hands of consumers—including annual free copies of their credit reports.  The proposals would also make it easier for victims to restore their credit histories and impose penalties if a company puts false information on credit records.

“The problem is so great, and its impact on consumers so terrible, that we should not delay giving consumers and law enforcers these important new tools to fight identity theft.”

The FTC report can be found at www.ftc.gov