Congressman Lamar Smith 21st district of Texas

Contact: Christopher Chichester 202-225-4236

Washington, May 14, 2004 - Ten years ago identity theft barely existed. But with the advent of the Internet and the digital revolution, identity thieves are increasing in number and commit crimes that ruin lives. Last year, over 1.5 million identity theft complaints were reported to the Federal Trade Commission.

Identity theft occurs when personal information is stolen, and then used fraudulently for economic gain. Identity thieves can obtain this information in remarkably simple ways. They can scavage documents from the trash, hack into computers or even steal mail. Once an identity thief has the personal information of another, the possibilities for abuse are endless.

Identity thieves can:

* Go on spending sprees using your credit and debit card account numbers to buy state-of-the-art products like computers that they can easily sell.

* Open a new credit card account, using your name, date of birth, and social security number. When they don’t pay the bills, the delinquent account is reported on your credit report.

* Give your name to the police during an arrest. If they are released and don’t show up for their court date, an arrest warrant could be issued in your name.

People whose identities have been stolen can spend months or years - and much of their hard-earned money – cleaning up the mess these criminals have made of their good name and credit record.

Senior citizens are the most likely target for identity thieves. Fifty-two percent of identity theft victims over 60 years of age reported that either new credit card accounts were opened in their name or that someone took over an existing account.

To prevent and reduce identity theft we must toughen the criminal penalties. Last week I voted for legislation that increases the penalties for identity theft and fraud. Those convicted of identity theft would receive an additional two years in prison. Identity theft committed in pursuit of a terrorist attack means an additional five years.

Identity theft in Texas is growing rapidly. Last year a University of Texas student with access to the university’s database stole 55,000 Social Security numbers. According to the Federal Trade Commission’s annual report, since 2001 Texas climbed from the eleventh ranked state in number of identity thefts per capita to the fourth.

The FTC provides advice to consumers, including a free booklet, Identity Theft: When Bad Things Happen to Your Good Name, which is available at www.ftc.gov.

Consumers also can report ID theft to the FTC by calling the agency`s toll-free number: 877-438-4338.

Our response to identity theft must continue to focus on consumer education, support of law enforcement and cooperation with the private sector in identifying ways to protect consumers from this serious crime.