Assembly OKs Identity Theft Protection Bills
BY JOHN TOSCANO

Pheffer explained that the legislation includes measures that would restrict businesses from filing personal identification information that is not necessary or relevant to a public record

Noting that identity theft costs consumers and businesses millions of dollars each year and imposes great personal stress, Assemblymember Audrey Pheffer announced the Assembly had passed a package of bills aimed at protecting New Yorkers from privacy invasions that could result in financial loss, damaged credit ratings and discrimination.

Pheffer (D-The Rockaways), Consumer Affairs and Protection Committee chair, and Assemblymember RoAnn Destito, Government Operations Committee chair, said they had introduced the legislation because electronic commerce has become pervasive in New Yorkers' lives. The new bills substantially strengthen laws to protect citizens from becoming identity theft victims.

Pheffer stated: "Identity theft costs consumers and businesses millions of dollars each year and is extremely disruptive to individuals and families. This comprehensive legislative package will serve to reduce this impact by implementing several important protections for consumers' personal information and providing assistance to those who become victimized."

The legislation, passed with bipartisan support, would enact new measures to protect personal information provided to the state as a matter of public record, more effectively restrict the unauthorized disclosure of Social Security Numbers and require businesses to be more responsible with the use and disposal of personal information.

Pheffer explained that the legislation includes measures that would restrict businesses from filing personal identification information that is not necessary or relevant to a public record; require state agencies and municipalities to reject documents containing personal information and phase in reduction of personal information on the Internet, and prohibit agencies from using Social Security Numbers as a means of identifying employees unless so required by law.

The legislation also would require that agencies design information retrieval systems in a manner that permits the segregation and retrieval of records.

The laws also would establish an Identity Theft Prevention and Mitigation Unit within the Consumer Protection Board, create an Identity Security Task Force and require law enforcement agencies to take identity theft complaints and provide reports on those incidents.

Broad restrictions on using an individuals' Social Security Number would also be imposed. Businesses would be restricted from printing Social Security Numbers on mailings and from using a number to access services or products. Employers would be restricted from identifying an employee by Social Security Number.

One of the major factors in identity theft is the unauthorized use of Social Security Numbers officials said.

Consumers would be able to "freeze" their credit reports under the legislation, thus prohibiting unauthorized access to this personal information. Businesses would have to be more responsible in disposing of personal identity information.

Pheffer said the legislation was developed following committee hearings last September which took testimony from officials of the U.S. General Accounting Office, the state Attorney General's office, the state Civil Service Department and the state Consumer Protection Board. Officials of various private businesses also testified.