Consumers can flag credit to battle ID theft

On the heels of the largest identity theft scare in U.S. history, the New York State Consumer Protection Board is cautioning New Yorkers to be vigilant about ID theft.
The U.S. Department of Justice (DOJ) announced Tuesday, August 5 that it has indicted 11 people who breached retail company information via wireless networks, exposing over 45 million credit cards to unauthorized access.
The indictment, coupled with recent anti-ID theft legislation enacted by Governor David Paterson, is “sending a strong message that we in government mean business when it comes to identity theft,” CPB Chairperson and Executive Director Mindy A. Bockstein said in a statement.
The new state laws restrict employers from displaying more than the last four digits of an employee’s Social Security number or placing the numbers in open access files; outlaw the possession of “skimmer” devices, which gain access to identifiable data from credit cards, when the intent is to use the device to commit ID theft; and bolster state-wide security freeze protections.
New “red flag” rules, effective November 1, 2008, require all federally regulated financial institutions, state agencies and anyone who owns or licenses computerized data in the state to file a breach notice with the CPB, the state Office of Cyber Security & Critical Infrastructure Coordination and the Office of the Attorney General. Agencies that maintain but do not own personal identifying data are required under the law to inform the owner or licensee in the event of a security breach.
“There are constant reports of security breaches. And certainly that’s cause for concern,” said CPB Director of Public Information Deborah Sturm Rausch, who noted that New York State is ranked sixth in per capita incidences of ID theft across the nation.
To cut down on ID theft in the state, the CPB advises consumers who feel their personal privacy has been jeopardized to monitor banking and financial statements and close accounts if necessary; check credit reports and inquire about credit monitoring services and protections such as installing a “fraud alert” or “security freeze” to make it more difficult for someone to open an account or credit card; and contact the notifying entity for more detailed information in order to maintain a record of the security breach.
“Repairing the damage done by identity theft is a daunting task for even the most savvy consumers, but the good news is there is a place to which New Yorkers can turn for assistance,” Bockstein said of the CPB.
The CPB encourages consumers to visit its website, www.nysconsumer.gov, for more information about preventing and dealing with ID theft.