November 28, 2008, Newsletter Issue #80: Identity Security and State Law

Tip of the Week

In 2005, ChoicePoint corporation broke the news that nearly 145,000 personal records had been sold in a breach of security. The company disclosed the breach to California residents only, as required by California law. Residents in other states found out about the breach later, making the problem much bigger than it had been at the onset. Since then, most states have enacted security breach disclosure laws to protect their own citizens.

Almost every state in the U.S. has enacted their own identity theft protection acts and identity theft prevention acts, making it easier to protect consumers and prosecute identity thieves. These identity theft laws specify what types of information should not be shared by financial institutions and businesses, and how to protect consumers from fraud. Several states, for example, have enacted legislation restricting businesses from printing more than five digits of a credit card number on a receipt. Many states also have laws prohibiting discrimination against identity theft victims and have initiated 'passport' or 'clean slate' programs to clear victims' financial records.

It's important to know what your state offers to help safeguard your identity and financial records. If you would like more information on identity theft acts in local states, look up the Federal Trade Commission (FTC) or a reputable identity protection agency for additional services.

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