By: Nicole Okhovat and Mara Ragan AP Gov. Period 5

What is Identity Theft? (A Mind Boggling Issue!!!) Identity theft refers to the crime of someone trying to impersonate you by stealing your personal information. The stealing of social security numbers and credit cards are popular forms of identity theft.

Identity Theft can be committed in many different ways:

Why is Identity Theft important to us? Do you want to get robbed? We don’t think so! Identity theft has many consequences, such as the victim losing lots of many…and not just pocket change. Identity Theft disrupts the economy because those working hard are cheated

Something to Consider Click HERE to view Identity Theft Commercial

Financial Privacy and Identity Theft Issues If unemployment increases, it is likely that more people will turn to crime to make money. It is important to keep all personal information highly confidential!

EXAMPLE: You apply for a job and application says “Social Security number (optional)”, don’t give it away. You DON’T KNOW who can get a hold of that number!

The House Bill vs Cali Bill 1996 Fair Credit Reporting Act promotes accuracy, fairness, and privacy of personal info. The House bill prevents financial companies from gaining access to consumer finances without the consumer’s consent. House bill is heavily lobbied by financial institutions

This is why protection is needed:

Difference between House Bill and California Bill The California Bill allows residents to get free monthly credit reports and businesses must put fraud alert on victim’s report within 5 days of incident House bill would eliminate all these factors House of Reps claims they do not want to “injure California consumers.”

Why Congress wants to overturn California’s measures Mainly banking lobbyists are behind the push to overturn the California Bill. The financial services industry for legislation is ultimately in favor of permanently abolishing state and local laws.

The Reason for Overturn Apparently the banking industry believes that these “laws” give consumers too much control over their own financial information. (But, isn’t this information rightfully the consumer’s?)

One Other State for Comparative Purposes Compared to California’s version of the Fair Credit Reporting Act, Alabama’s representatives believe it would not be beneficial for California to “dictate rules,” for every state. This opinion thus demonstrates Alabama’s differing views from those of California, on the issue of the Act’s domination.

Top Ten States for Identity Theft (on per-capita basis) State Victims/100,000 Total victims 1. Arizona 142.5 8,186 2. Nevada 125.7 2,935 3. California 122.1 43,839 4. Texas 117.6 26,454 5. Colorado 95.8 4,409 6. Florida 92.3 16,062 7. New York 92.0 17,680 8. Washington 91.1 5,654 9. Oregon 87.8 3,156 10. Illinois 87.6 11,138 Source: Consumer Sentinel

Senator Oxley’s Comment Senator Oxley is warning that with so many variations of “state standards” regarding Identity theft, there may ultimately be confusion from state to state. With this in mind, his comment is saying that under the Fair Credit Reporting Act, everyone would have to follow the same guidelines, essentially allowing for a sense of equality.

Which is Better? Cali or the House’s Fair Credit Reporting Act? California’s FCRA is more favorable towards its residents Allows consumers to get monthly credit reports for one year at no cost to them = More money for you to spend at the holiday sales!

Why CA’s FCRA is better Consumers are better protected because their information is kept more confidential than if the House Bill became law. House bill would give out more of your personal info.to other financial companies This may lead to fraud… 

Maxine Waters’ Comment Maxine Waters’ comment, refers to the fact that Conservatives usually push for states’ rights. Waters is a Democrat. This deviation from the normal wants of each party, demonstrates that what is good for one party, does not necessarily benefit another.

Be safe and don’t fall victim to IDENTITY THEFT! So Remember: Be safe and don’t fall victim to IDENTITY THEFT!

Bibliography: http://moneycentral.msn.com/content/Banking/FinancialPrivacy/P125094.asp http://pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm http://query.nytimes.com/gst/fullpage.html?res=9D03EFDB1231F936A15753C1A9659C8B63&sec=&spon=&pagewanted=all http://youtube.com/watch?v=KERwnA8VfFM