LANSING – The Michigan House of Representatives today passed a plan introduced by State Representative Mary Valentine (D-Norton Shores) to help better protect Michigan residents from identity theft. The plan is part of a comprehensive package that will toughen penalties for identity thieves and strengthen consumer protections.
"Many of today's criminals are going high-tech – making computers and telephones their weapons of choice," Valentine said. "We must ensure our consumers have the tools to guard themselves against the advanced tactics these criminals are using to steal innocent residents' identities. This plan will toughen our consumer protection laws to help us keep up with the evolving skills of these faceless thieves."
The plan that passed the House today will:
- Force identity thieves to compensate victims for damage done to their financial affairs and credit history, and require courts to order restitution for victims.
- Require businesses to have a written identity theft prevention plan to protect consumers.
- Protect customers' personal information by requiring that any data that includes unencrypted or unredacted information be destroyed when it is removed from the database of a business or agency.
- Prohibit an individual from using another person's personal information to mislead law enforcement officials or courts regarding an individual under investigation.
- Create the Identity Theft Commission, a group within the Michigan Department of Information Technology that will study new and evolving ways to prevent identity theft.
Identity theft is the fastest growing type of fraud in the country. In 2008, about 9.9 million Americans reported
being victims of identity theft – a 22 percent increase from 2007, according to the U.S. Congressional Research
Service. According to the Federal Trade Commission (FTC), identity theft costs consumers nearly
$50 billion each year.
"Preventing identity theft is just as vital as adequately punishing those who commit this growing crime," Valentine said. "It can take years and thousands of dollars for a victim of identity theft to recover what they lost. This plan provides the resources our residents need to protect their hard-earned money and credit, especially during a time when so many families are struggling just to make ends meet."