Background

The "Identity Theft and Assumption Deterrence Act [1998]" -  H.R. 4151, is a Bill passed by the U.S. Congress making amendments to Part I, Title 18 of U.S. Code are to Chapter 47 - Fraud and False Statements.

The Act also provides the Federal Trade Commission with the mandate of a centralized complaint and consumer education service for victims of "Identity Theft".

In his prepared testimony before the Subcommittee on Technology, Terrorism and Government Information [May 20, 1998], David Medine, Associate Director of Credit Practices, Bureau of Consumer Protection, Federal Trade commission stated: "The consumer protection mission of the FTC is to promote the efficient functioning of the marketplace by protecting consumers from unfair or deceptive acts or practices and increasing consumer choice by ensuring vigorous competition." 

The Identity Theft and Assumption Deterrence Act was enacted under authority of Article 1, Section 8 of the U.S. Constitution.  Article 1, Section 8 provides Congress with authority to, among other things, provide for the general "welfare" of the United States. Welfare in this context means: "health, happiness, or prosperity; well-being." The specific clause cited as the authority for this Act is the power of the Congress, "to regulate commerce with foreign nations, and among the several states, and with the Indian tribes".     
 
This amendment to Title 18, Chapter 47 s. 1028 makes the unlawful use of "means of identification" a federal crime alongside the unlawful use of identification documents.  While the Act creates a new offense under the "fraud" banner, Its supporters continue to point to s. 1028 as "identity theft" legislation. 

Identity Theft Penalty Enhancement Act, 18 U.S.C § 1001

Source: Public Law 108-275

"This Act establishes penalties for aggravated identity theft. Aggravated identity theft is committed when an individual “knowingly transfers, possesses, or uses, without lawful authority, a means of identification of another person” while committing or in relation to the commission of another felony. Aggravated identity theft is also committed if the related felony is a terrorism felony. 

This statute also requires that sentencing guidelines for “offences in which the defendant exceeds or abuses the authority of his or her position in order to obtain unlawfully or use without authority any means of identification” be reviewed to appropriately punish identity theft committed by insiders. "

Source: CIPPIC, Identity Theft: Inventory of Applicable Legislation (DRAFT), 2006

Fair and Accurate Credit Transactions Act  (FACTA), U.S.C. § 1681

Source: The Fair Credit Reporting Act

"When consumers contest information in their credit report, this Act imposes a duty on credit bureaus to indicate that fact in credit reports which contain the disputed information.
This Act also limits credit card information which can be printed on receipts given to the consumer at the point of sale. Only the last five digits or the expiration date can be electronically printed on receipts. This provision does not apply to “manual” paper transactions.

This Act imposes a duty on credit bureaus to notify credit report requestors of significant discrepancies between the consumer address in the request and the consumer address in the credit bureau’s file.

This Act also imposes a duty on credit bureaus to place a “fraud alert” on the consumer’s file when a consumer asserts in good faith a suspicion that the consumer has been or is about to become a victim of fraud or related crime, including identity theft. Under these circumstances, the fraud alert must remain for 90 days. The duty also requires the credit bureau to notify the other credit bureaus. When placing a “fraud alert” on a consumer file, the credit bureau must notify the consumer that he or she may request a free copy of their file.

This Act also imposes a duty to place an extended “fraud alert” on a consumer file when a consumer submits an identity theft report. To invoke this provision a victim must have a police report. An extended fraud alert can remain up to seven years on a consumer’s file. It also prohibits credit bureaus from providing the consumer’s information in lists of consumers prepared by the consumer reporting agency and provided to any third party to offer credit or insurance. A notice of the extended “fraud alert” must also be provided to the other credit reporting agencies. A consumer who gets an extended “fraud alert” placed on his or her file can get two free copies of his or her file in the following twelve months.

When credit grantor (user) receives a credit report containing a “fraud alert”, it must not extend new credit unless the user utilizes reasonable policies and procedures to form a reasonable belief that the user knows the identity of the person making the request.

This Act also prohibits credit reporting agencies from including any information in credit reports which the consumer has identified as consequences of identity theft. To get information removed, the consumer must provide a copy of an identity theft report obtained from local law enforcement.

This Act also imposes a duty on consumer reporting agencies to make a reasonable effort to verify the identity of a new prospective user and the uses certified by such prospective user prior to furnishing such user a consumer report. No consumer reporting agency may furnish a consumer report to any person if it has reasonable grounds for believing that the consumer report will not be used for a permitted purpose.

This Act makes it an offence to knowingly and wilfully obtain information on a consumer from a consumer reporting agency under false pretences and makes it an offence for an employee of a credit reporting agency to knowingly and wilfully provide information to a person not authorized to receive it.

This Act requires consumer reporting agencies to provide to an individual his or her credit report free of charge, at least once in every 12 month period. 

This Act also requires that any person who maintains or otherwise possesses consumer information, or any compilation of consumer information, derived from consumer reports for a business purpose, properly dispose of any such information or compilation. The requirement for the proper disposal of records is implemented in the FTC Rule Disposal of Consumer Report Information and Records."

Source: CIPPIC, Identity Theft: Inventory of Applicable Legislation (DRAFT), 2006

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