Preventing Identity Theft - How Laws Work FOR or AGAINST You!

Preventing identity theft has been successful, not only because of public vigilance, but also because of government measures. Based on Federal Trade Commission statistics, the growth of identity theft cases is on a steady decline. Checking state legislation dates for laws on identity theft, it is apparent that state-level measures have been effective in preventing identity theft.

In 2003, identity theft cases grew by 33%. In 2004, the figure was 15% and in 2005, it dropped to 3.5%.

Twenty-two states enacted laws on data-breach notification in 2005 as a means of preventing identity theft. These laws make it mandatory for companies to tell consumers if any of their data has been shown to or compromised by identity thieves.

State governments have also implemented various privacy laws preventing identity theft. Some of these state laws were enacted after citizens discovered that they became victims of identity and credit card fraud because the government made their personal data available online!

Today, more than 11 states now have laws on "Credit Freeze." If your state has such a law, it will be close to impossible for you to be victimized by identity thieves once you use your right to freeze your credit documents.

Write your state congressman if you would like a Credit Freeze law in your state to give you more control over your financial privacy.

Preventing Identity Theft - Government Sabotage?

Now for the bad news: Even if your state has strict laws that are effective in preventing identity theft, there is a danger that the federal government may be pulling in the opposite direction.

There are around 20 bills pending in Congress that may just set national standards for data-breach notification at a substantially weaker level than your state's standards. If enacted into law, these measures will remove your state government's right to regulate firms and enterprises that operate within your borders, which will virtually handcuff government from preventing identity theft.

Preventing Identity Theft - What Laws Are Working Against You?

But even at this minute, there already exist federal laws that may make you vulnerable to identity thieves. One example is the Patriot Act. Under this law, if your landlord becomes suspicious of you, he can demand your personal data to perform a background check.

This is how slumlords are able to use their tenants' personal data to commit fraud. They simply exercise their right to a background check. The Patriot Act makes both the tenant and government powerless at preventing identity theft.

This is just one instance that clearly shows how a federal law can not only create the opportunity for identity theft but enforce it as well!