SENATE PASSES BILL TO PENALIZE IDENTITY THEFT

Wednesday, May 31, 2000

The New York State Senate today passed legislation (S.1188B), sponsored by Senator Roy M. Goodman (R-L, Manhattan), which would create the crime of identity theft and establish strict penalties for thieves who obtain another person�s personal information and use their identity to commit fraud and other unlawful acts. This legislation was a primary recommendation of the Senate Majority Task Force on Privacy Invasion.

�This legislation makes clear the seriousness of the crime of identity theft in which individuals seek to defraud others by stealing vital identifying information,� Senator Goodman, a Vice-Chairman of the Task Force, said. �Such crimes have burgeoned in the age of computers and must be stopped before more damage is done.�

�Identity theft is one of the fastest growing crimes in the nation and impacts about 400,000 victims each year,� Senate Majority Leader Joseph L. Bruno, Chairman of the Task Force, said. �When the Task Force held hearings throughout the State it became clear that New Yorkers are very concerned about the potential for identity theft and that we must update our laws to prevent it and penalize criminals who abuse someone else�s good name and credit record.�

The bill passed by the Senate would make it a crime to knowingly obtain any personal identifying information of another with the intent to use that information to obtain or attempt to obtain credit, goods, money, or services in the name of the other person without the consent of that person. It would also prohibit people from using another person's identity for any unlawful purpose or to cause financial loss to the other person without consent. Under the provisions of the bill, identity theft in the first degree would be a Class D felony, punishable by up to seven years in prison.

Twenty-two states have enacted identity theft laws.
The Senate Majority Task Force on Privacy Invasion found that identity theft is growing for several reasons. One reason may be the fact that it is relatively easy to obtain credit. There is considerable competition among creditors for customers, sometimes leading to inadequate checks of identity prior to the granting of credit. Pre-approved credit offers are very popular
with identity thieves since the initial screening is already done. Another incentive for thieves to choose this crime is the availability of personal information, particularly Social Security numbers, needed to commit the acts. While innocent victims may not be responsible for paying the bills the thieves run up, the victim may spend years and thousands of dollars trying to clear his or her name and once again obtain credit.

Many identity theft victims may not be aware of the problem until they are turned down for a mortgage or student loan, or until they notice unauthorized charges on their credit card statement. It may take much time, effort, and expense to fix a personal credit history or to repair a financial reputation. Meanwhile, retailers and banks become victims too, losing millions of dollars. As a result, the higher costs of doing business are ultimately passed on to consumers and other businesses.

The bill was sent to the Assembly.

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