FTC Outlines Steps to Assist Identity Theft Victims

The Federal Trade Commission today told Congress that it is working with federal, state and local law enforcers, to prevent identity theft, provide victim assistance, and prosecute perpetrators. Speaking before the House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit, Howard Beales, Director of the FTC's Bureau of Consumer Protection, said that in November 1999 the Commission set up a toll-free hotline where identity theft victims can obtain counseling and consumers can learn how to minimize their risk of becoming victims. Beales noted that in 2001, more than 117,000 complaints from identity theft victims were added to the FTC's database, the Identity Theft Data Clearinghouse. In 2002, those complaints increased by almost 162,000. Beales said the dramatic increase may reflect a growing awareness of consumers about identity theft.

Beales said consumers who call the FTC hotline "receive telephone counseling from specially trained personnel who provide general information about identity theft and help guide victims through the steps needed to resolve the problems resulting from the misuse of their identities." Consumer are advised to contact the three national consumer reporting agencies and have a fraud alert placed in their file; close accounts identity thieves have accessed and dispute unauthorized charges; and report the theft to the police and get a police report. "Counselors also advise victims having particular problems about their rights under relevant consumer credit laws, including the Fair Credit Reporting Act, the Fair Credit Billing Act, the Truth in Lending Act, and the Fair Debt Collection Practices Act. If the investigation and resolution of the identity theft falls under the jurisdiction of another regulatory agency that has a program in place to assist consumers, callers also are referred to those agencies," Beales said.

The FTC also has worked to provide consumers with information through its consumer education and outreach efforts. The FTC's comprehensive identity theft publication, "When Bad Things Happen to Your Good Name," which is available in both English and Spanish, is available at the FTC's identity theft Web site at www.consumer.gov/idtheft. "To increase identity theft awareness for the average consumer, the FTC recently developed a new primer on identity theft, 'ID Theft: What's It All About?' This publication discusses the common methods of identity thieves, how consumers can best minimize their risk of being victimized, how to identify the signs of victimization, and the basic first steps for victims," Beales said.

"Because law enforcement at the state and local level can provide significant practical assistance to victims, the FTC places a premium on outreach to such agencies," Beales said. He pointed to an initiative taken in conjunction with North Carolina's Attorney General, Roy Cooper, to notify each state's attorney general to alert them to how they could use the FTC resources to better assist their residents. "Through this initiative, the FTC hopes to make the most efficient use of federal resources by allowing states to take advantage of the work the FTC has already accomplished and at the same time continuing to expand the centralized database of victim complaints and increase its use by law enforcement nationwide," the testimony says. In addition, one goal of the Clearinghouse is to provide support for identity theft prosecutions. Last year, in conjunction with the Department of Justice, the International Association of Chiefs of Police, and the United States Secret Service, the FTC initiated identity theft training for state and local law enforcement officers across the country. "More than 730 officers have attended these seminars, representing more than 170 different agencies," the testimony says.

"Identity theft and large scale security breaches place substantial costs on individuals and businesses," the testimony says. "The Commission, through its education and enforcement capabilities, is committed to reducing these breaches as much as possible. The Commission will continue its efforts to assist criminal law enforcement with their investigations. Prosecuting perpetrators sends the message that identity theft is not cost-free. Finally, the Commission knows that as with any crime, identity theft can never be completely eradicated. Thus, the Commission's program to assist victims and work with the private sector on ways to facilitate the process for regaining victims' good names will always remain a priority."

Copies of the testimony are available from the FTC's Web site at http://www.ftc.gov and also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1 877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

(FTC File No.P034302)