In Wake Of Recent Discovery Of Largest Identity Theft Scheme In History: Schumer: Id Theft Rising Dramatically Across Upstate NY, Costing Businesses And Consumers Over $1 Billion A Year - Pushes Legislation To Keep IDs Safe
Press Release
Legislation Will Increase Penalties For ID Theft; Require Companies To Notify Consumers And Police Of Privacy Breaches; Require Commercial Data Brokers To Guard Data More Carefully
Commercial Data Firms Nationwide Are Shockingly Not Required To Inform Consumers When Their Data Is Lost
ID Thefts Up Almost 25% In The Last Year Alone - ID Thefts Cost Capital Region $160 Million in 2008; $236M in Western New York; $184M in Rochester-Finger Lakes; $159M in Central New York; $101M in Southern Tier; $376M in Hudson Valley; $88M in North Country
In the wake of the discovery of the largest identity theft scheme in history today U.S. Senator Charles E. Schumer announced that identity thefts across Upstate New York have risen by almost 25% in the last year alone. Schumer said that identity theft costs upstate New Yorkers over $1 billion each year, and could grow increasingly common as more and more information is kept online. Schumer is pushing legislation that will tackle the growing problem by increasing penalties for stealing IDs, requiring firms that experience a security breech involving personal data to notify consumers and the police, and require companies to enact stricter procedures to keep Americans' identities safe. Schumer said that it is outrageous that commercial data firms are not required to provide notification if there is a security breach and personal information is lost.
"Identity theft is a scourge on hard working Americans, and it is a problem that is getting worse," said Schumer. "We must do everything in our power to make sure that criminals are not draining our bank accounts through the back door, and that companies are protecting private data in the most aggressive way possible"
The term "identity theft" refers to fraud that involves someone pretending to be someone else in order to steal money or get other benefits. The person whose identity is stolen can suffer various consequences if he or she is held responsible for the perpetrator's actions. In many cases, a victim's losses may include not only out-of-pocket financial losses, but substantial additional financial costs associated with trying to restore his or her reputation in the community and correcting inaccurate information.
Many people do not realize how easy it is for a criminal to obtain an individual's personal data. For example, in public places criminals may watch their victim from a nearby location and listen in on the conversation if the individual gives his or her credit-card number over the telephone.
Some criminals even engage in "dumpster diving" going through garbage cans or a communal dumpster - to obtain copies of a person's checks, credit card or bank statements, or other records that typically bear the individual's name, address, and telephone number. These types of records make it easier for criminals to get control over accounts and assume the victim's identity.
In recent years, the Internet has become an attractive place for criminals to obtain identifying data, such as passwords or even banking information. Many people involuntarily provide identifying information to criminals by responding to unsolicited emails promising some benefit, without realizing that in many cases, the requester has no intention of keeping that promise.
All of these techniques have resulted in an almost 25% increase in the number of identity thefts in Upstate New York in the past year. In 2007, approximately 221,000 people were victims of identity theft in Upstate New York. In 2008, that number rose to approximately 270,000 people -- an increase of 48,000 people. These thefts caused approximately $1.3 billion in damages to the victims. New York is ranked 6th among the 50 states in the number of identity theft complaints made to the FTC.
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