GOVERNOR PATERSON ANNOUNCES AGREEMENT WITH LEGISLATURE ON BILL TO STRENGTHEN NEW YORK’S IDENTITY THEFT LAWS

Bill Will Protect New Yorkers from Fraudulent Use of Personal Information

New York State Ranks 6th in U.S. for Identity Theft Complaints

Governor David A. Paterson today announced that the Legislature has reached an agreement on a bill that would strengthen New York State’s identity theft laws in a variety of ways, including the enhancement of privacy protection in the work place and programs to aid those who have had their identities stolen.

Identity theft is the most common consumer fraud complaint and the fastest growing financial crime, affecting approximately 10 million Americans each year. In 2007, New York ranked sixth in the country in per capita identity theft complaints, according to Identity Theft Data Clearinghouse of the Federal Trade Commission (FTC).

"These kinds of protections are long overdue for the citizens of New York. Increasingly, commerce is done over the internet, making sensitive information more vulnerable to theft than ever before,” said Governor Paterson. “The consequences of identity theft can be devastating and far-reaching. This bill recognizes the new risks facing consumers today and puts a number of critical safeguards in place to help the people of New York State protect their credit and their good names."

The bill will restrict the ability of employers to use an employee's personal information, including prohibitions against posting or displaying more than the last four digits of an employee's social security number or placing social security numbers in files with open access. This will provide important confidentiality safeguards for employees. Additionally, the bill outlaws the possession of "skimmer" devices - which can obtain personal identifying information from credit cards - under circumstances where there is intent to use the device to commit identity theft.

Victims of identity theft will now be able to seek assistance from the Consumer Protection Board’s (CPB) Identity Theft Prevention and Mitigation Program. The program will assist victims to undo the damage that identity theft has done to their financial and credit history. The bill enhances aspects of the security freeze law – a 2006 law that gives consumers the choice to "freeze" or lock access to their credit file against anyone trying to open up a new account or to get new credit in their name – and extends important confidentiality protections to public entities, preventing the intentional communication of social security numbers to the public.

Finally, the bill enables victims of identity theft to obtain restitution equal to the value of the time they spend fixing the damage of identity theft. According to one study, it takes identity theft victims as much as 330 hours to fix the damage done by identity theft. For the first time, these victims will be able to be compensated for their lost time. Governor Paterson noted that victims of identity theft face an arduous task in repairing their financial records, credit rating, and wellbeing. They require assistance and intervention to address their particular needs and navigate various public and private systems.

Senate Majority Leader Joseph L. Bruno said: “I want to commend Senator Charles Fuschillo for his leadership in addressing the crime of identity theft and for working with the Governor and Assembly to get real results, not only to protect consumers but to help them get more assistance when they are victimized. Identity theft is a very personal and damaging crime and this comprehensive legislation will help strengthen our laws to stop criminals from stealing people’s information and help victims restore their credit.”

Assembly Speaker Sheldon Silver said: “Identity theft is a serious problem that can have an effect on anyone. This legislation will strengthen New York State’s identity theft laws by protecting individuals from the misuse of their personal information, and it is a great step forward in safeguarding sensitive information. It will give important controls back to identity theft victims and help all consumers with a range of other measures to curb identity theft. I applaud Governor Paterson for addressing an issue that will protect all New Yorkers.”

Senate Minority Leader Malcolm A. Smith said: "With Internet shopping, buying gas and food, we are now using our credit cards to purchase just about everything. It is essential that we have strong privacy protection policies and laws in place. Governor Paterson should be commended for putting in place legislation that will make sure that sensitive information is protected from theft. But most important, the governor has made sure with this legislation will allow New York consumers to continue using their credit cards with the confidence of knowing they are protected."

Senator Charles J. Fuschillo, Jr., Chair of the Senate Consumer Protection Committee said: “This legislation addresses a number of important issues related to the growing crime of identity theft. It puts in place important identity protections at the workplace and outlaws the use of skimmers, which allow identity thieves to secretly steal an individual’s personal and private information. The measure will also enable victims of identity theft to get more assistance from the Consumer Protection Board to repair their credit and enable them to receive greater restitution for the countless hours of time lost trying to fix the damage from this crime.”

Assemblywoman Audrey Pheffer, Chair of the Assembly Consumer Affairs & Protection Committee said: “Identity theft is an extremely important consumer fraud concern and a serious financial crime. Working together we have put a plan in place to restrict the amount of personal information that is accessible to identify thieves. This measure strengthens the security freeze law, which I sponsored, and will offer all New Yorker’s a higher level of protection from new and existing risks.”

Senator Ruth Hassell-Thompson, Ranking Member of the Consumer Protection Committee said: "The Governor should be commended for this important legislation that will protect consumers. This legislation will also help provide safeguards for Seniors Citizens who are often the targets of scams and gimmicks. Any efforts we can make to ensure added protects for all New Yorkers, especially our Seniors, we must take."

Assemblywoman RoAnn Destitio, Chair of the Assembly Governmental Operations Committee said: “Victims of identity theft face the grueling task of repairing their credit rating, clearing up errors in their financial records, and restoring consumer confidence. This bill takes great steps in filling gaps in our existing identity theft protections and offers new confidentiality safeguards for employees. All too often victims are cut off from services, resources and information they need. This piece of legislation takes a proactive approach to protecting New Yorkers from identity theft.”

Senator Eric Schneiderman, Ranking Member of the Codes Committee, said: "The fastest growing area of crime in the United States is identity theft and fraud. Today, we are taking a big step towards protecting all New Yorkers and all New York businesses."

Assemblyman Adam Bradley said: “This legislation is a direct result to the growing number of financial crimes leading to identity theft. Employers will now have restrictions on how they use employee’s personal information, including prohibiting employers from posting or displaying more than the last four digits of an employee’s social security number. Protecting social security numbers will provide important confidentiality safeguards for employees and protect many of our State's residents.”

Mindy A. Bockstein, Chairperson and Executive Director of the Consumer Protection Board said: "Identity theft is at the top of the list of consumer concerns received by the Consumer Protection Board. Governor Paterson’s efforts to assist New Yorkers who fall victim to identity theft is illustrative of our State’s commitment to protecting and empowering consumers. The CPB stands ready to assist victims with a host of tools, resources and interventions to help them recover from damages done to their financial and credit histories by identity thieves."

Jim Murphy, District Attorney of Saratoga County and President of the District Attorneys' Association said: "The Association welcomes the criminal provisions of this bill. Identity theft is an especially difficult crime to investigate and prosecute, and this bill makes procedural and substantive changes that will enable law enforcement to handle these important cases much more effectively."