Durbin Calls for Senate Hearing and Agency Investigations on Fraudulent Sale and Use of Private Phone Records
DURBIN CALLS FOR SENATE HEARING AND AGENCY INVESTIGATIONS ON FRAUDULENT SALE AND USE OF PRIVATE PHONE RECORDS
U.S. Senator Dick Durbin (D-IL) today renewed his call to stop the sale and fraudulent use of private telephone records. In letters sent today, Durbin requested a hearing from the Senate Judiciary Committee, and investigations from the Federal Trade Commission (FTC), Federal Communications Commission (FCC), and Department of Justice.
"The sale of an individual's personal telephone call records is a violation of privacy, and can pose a real threat to personal safety," Durbin said. "The sale and fraudulent transfer of these records needs to be punishable as a true criminal offense, subject to jail time and fines. I have called for full and immediate investigations because Congress, the Department of Justice and the regulatory agencies have an obligation to get to the bottom of these outrageous offenses."
In a letter sent today to Senator Arlen Specter (R-PA), Chairman of the Senate Judiciary committee, Durbin wrote to request that the Senate Judiciary Committee hold a hearing "on the reports that personal telephone records have been obtained and sold without customer approval."
Durbin also wrote to the Chairman of the FTC, Deborah Platt Majoras, and the Chairman of the FCC, Kevin J. Martin, urging these agencies to immediately conduct comprehensive investigations. Durbin noted that, although the agencies have initiated investigations, there is still a need to determine what methods are being used by phone companies to protect customer privacy and how effective they are. Durbin also asked these agencies to explain the extent of their authority to stop these privacy violations. This explanation could clarify the need for legislation. Durbin also asked, in a letter sent to Attorney General Alberto Gonzales, that the Department of Justice conduct similar investigations into the matter.
Last month, Durbin introduced a bill that would make it illegal to sell or transfer personal information from telephone companies. The legislation provides tough criminal penalties, including up to 10 years in prison, for those found guilty of violating phone users' privacy.
Durbin said that recent reports show that online brokers have illegally obtained cell phone records by posing as customers, hacking into online accounts or purchasing them from rogue employees of cell phone companies. Online brokers have made these records available for sale to anyone willing to pay for them.
The senator noted that the sale of personal call records is not only a violation of individual privacy; it creates the possibility of identity theft and threatens the personal safety of law enforcement and public officials. There are significant concerns that criminals could use such services to obtain personal information about police, especially undercover officers. Recent investigations indicate that the cell phone records of the Chicago Police Department and public officials have been among those targeted.
In a letter sent to his Senate colleagues last month, Durbin wrote "Although current law addresses fraud and identity theft using the internet, enforcement is sparse and is not a priority for the Justice Department. In addition, the law does not specifically prohibit the sale of personal information obtained illegally and without the consent of telephone customers."
Durbin emphasized the need to address issues raised by the current patchwork of laws and regulations, which make it difficult to determine whether the information was illegally obtained and easy for violations to slip through the cracks. According to current telecom laws, telephone companies are obligated to protect customers' personal information, with the exception of warranted inquiries from law enforcement. The Federal Communications Commission (FCC) monitors and regulates telephone companies and their compliance with privacy laws. The Federal Trade Commission (FTC) handles fraud complaints. However, if an online broker obtains telephone records, the law does not prohibit their subsequent sale.
Durbin also sent letters today to others involved in the phone records issue, including Congresswoman Jan Schakowsky, Illinois Governor Rod Blagojevich, Illinois Attorney General Madigan, and the Illinois Commerce Commission Chairman, Charles Box, expressing his desire to work with them to prevent these privacy violations.
Four of the letters appear below:
February 10, 2006
The Honorable Arlen Specter
Chairman
Senate Judiciary Committee
224 Dirksen Senate Office Building
Washington, D.C. 20510-6275
Dear Chairman Specter:
I am writing to you today to request that the Senate Judiciary Committee hold a hearing on the reports that personal telephone records have been obtained and sold without customer approval.
You and I have both introduced measures to prevent these privacy invasions. I am sure we can resolve any differences in our approaches quickly. It is important that this legislation move forward expeditiously. A hearing will allow us to illuminate the issue and lay the groundwork for a legislative fix.
Although current law addresses fraud and identity theft using the Internet, the law does not specifically prohibit the sale of personal information obtained illegally or without the consent of cell phone customers. Consumer and privacy groups have expressed concerns about how easily unauthorized persons can gain access to their personal information. Regardless of how a bad actor obtains the telephone records of innocent and unsuspecting customers, the sale of such information should be prohibited.
My legislation, the Phone Records Protection Act of 2006, S. 2177, would prohibit the sale or fraudulent transfer or use of telephone records and provide tough criminal penalties for violating phone users' privacy.
I look forward to working with you and other members of the Judiciary Committee on this important matter.
Sincerely,
Richard Durbin
United States Senator
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