A New Law to Put the Bite on Identity Thieves
By Teresa Ambord
Identity theft is big business, accounting for $50 billion in fraudulent transactions in the United States. Most people have seen the credit card commercials that tell the story of some criminal who has hijacked and squandered the credit of a hard-working American. Now a second credit card company is running similar commercials. The ads are funny. The crime is not. Just ask any one of the ten million Americans affected in 2003 alone.
That's why President Bush has just signed the Identity Theft Penalty Enhancement Act (ITPEA). Identity theft "undermines the basic trust on which our economy depends," said the President. In addition, using stolen identities is one tool that has served terrorists well, a sad fact that this country will never forget since 9/11.
Here are some of the provisions of the ITPEA:
- This law creates a new class of crime, aggravated identity theft. This is identity theft used in the commission of a felony, and requires a mandatory two-year prison sentence.
- If the crime is related to terrorist activity, the penalty is enhanced by an additional five-year prison sentence.
- The ITPEA orders the U.S. Sentencing Commission to stiffen the penalties when identity theft is committed in the course of employment.
- Overall, the new legislation makes it impossible for lenient judges to hand down softball punishments such as probation and community service.
Other than purchasing insurance, which can be expensive, what are some common sense things you can do to protect yourself from determined thieves?
- The Post Office suggests that you mail bills and other letters that contain identifying information only inside the post office, or in the official blue boxes, rather than leaving mail for the postal carrier to pickup. That gives thieves an opportunity to beat the carrier to the punch.
- The Postmaster recommends that if your home mail delivery suddenly stops, check with your post office immediately. Clever thieves sometimes file "change of address" forms on their intended victims and divert their mail to post office boxes. This accomplishes two things. It allows thieves to examine your mail without fear of being discovered, and it buys them time until you discover bogus charges on your credit card accounts, or new accounts opened by them in your name.
- Obviously, never throw away anything your personal information on it without first shredding it, especially pre-approved offers for credit cards or home refinancing.
- Don't put unnecessary information on your personal checks.
- Don't accept offers for major credit cards over the phone. Ask them to send you a written application.
- If you have any reason to doubt before dealing with a company, check it out with the Better Business Bureau. They will know if an organization has complaints of fraud against them.
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