Pryor Applauds Committee Action on Identity Theft Bill; Says His "Security Freeze" Strengthens Consumer Protections in Bill
Pryor Applauds Committee Action on Identity Theft Bill; Says His "Security Freeze" Strengthens Consumer Protections in Bill
WASHINGTON, DC-Senator Mark Pryor today joined members of the Senate Commerce Committee in passing legislation that provides consumers with the most powerful tools yet in fighting identity theft. Pryor's security freeze, introduced in the Senate last month, was included as a major component of the comprehensive bill. Pryor said his "security freeze" provision in the bill would prevent identity thieves from opening new credit accounts to accumulate debt in their victims' names. He said participation in the "security freeze" is voluntary, and consumers would have the option of lifting the freeze in advance of applying for new credit. Identity theft victims would be offered the service free of charge, while others would be charged a reasonable fee to be determined by the Federal Trade Commission.
"Identity theft is occurring at alarming rates because we don't have the right to fully protect our own financial information, and that makes each one of us a potential victim," Pryor said. "I've worked to solve this problem by giving consumers a powerful tool that stops an identity thief dead in his tracks. My security freeze is 100% consumer-friendly, and strengthens this bill drastically."
Pryor said the comprehensive bill also sets national standards for notifying consumers of data breaches; requires businesses and schools to improve their safeguards for sensitive consumer information; and limits businesses, schools and other information holders from unnecessarily soliciting Social Security numbers.
The Federal Trade Commission reports 27.3 million Americans have been victims of identity theft in the last five years, costing businesses and financial institutions $48 billion. In Arkansas, 1,397 identity theft cases were filed in 2004, an 8 percent increase from the previous year. Consumers Union, a nonprofit publisher of Consumer Reports, estimates Americans have spent $5 billion and 600 hours to clear their credit reports after an identity theft incident.
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