LANSING – State Representative Terry Brown (D-Pigeon) today voted for a plan to help better protect Michigan residents from identity theft. The plan is part of a comprehensive package to toughen penalties for identity thieves and strengthen consumer protections for victims.
"In this economy, we need to do all we can to protect our hard-working families whose livelihoods can be threatened by some stranger sitting at a computer thousands of miles away," said Brown, a sponsor of the plan. "Recovering from identity theft can cause families years of financial hardship and cost thousands of dollars. Our residents deserve stronger laws so that their personal information is properly protected."
The plan sponsored by Brown 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 a business or agency's database.
- 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.
"With all the technology out there today, criminals are finding new ways to steal consumer identities," Brown said. "With identity theft growing at an alarming rate, these strong new penalties and safeguards are needed now more than ever. I was glad to see the bipartisan support for this plan and applaud my colleagues on both sides of the aisle for their efforts in standing up for consumers across Michigan."