Identity
Theft and Consumer Privacy
Virtually every commercial transaction
that doesn’t involve cash is open to exploitation by criminals
who specialize in- abusing the personal information of individuals.
Any business that accepts checks or credit cards or keeps any
kind of customer information is vulnerable. All it takes is a
momentary slipup and an opportunistic thief can steal someone’s
identity, racking up thousands of dollars of fraudulent purchases
and unpaid debt.
Protecting individuals against identity theft and other invasion-of-privacy
issues is becoming difficult and more important as technology
and criminals become more sophisticated.
Lawmakers increasingly find themselves challenged to protect
privacy without unduly hindering the freedom of commerce. The
cost for meeting the demands for increased protection typically
fall on the business community, which must adapt their systems
to accommodate new mandates. Several proposals designed to fight
ID theft and protect the personal information of their customers,
have already been filed for the 2006 Legislative Session.
One bill would allow consumers to place a ‘security freeze’
on their credit reports, thereby preventing unauthorized access
to credit information. While this sounds like a good idea, it
often traps the consumer who is applying for instant credit in
order to make a purchase. If the consumer forgets to remove the
freeze, the purchase of a new car or the opening of a store credit
account cannot be completed. Since security freezes are not necessarily
easily or quickly removed, having one in place could also forestall
a consumer’s attempt to get a bank loan.
While many businesses utilize Social Security numbers because
they are the only unique identifier available, another bill would
restrict or even prohibit their use on insurance identification
cards, student IDs, and certain information sent by mail. Additionally,
the legislation would prohibit the use of Social Security numbers
for obtaining certain goods or services except as legally required.
Legislation has been filed that define the disclosure, sale,
or transfer of personal identification information to a foreign
country without prior consent as a deceptive and unfair trade
practice, while also making the action a third-degree felony.
Many large companies ship consumer information to India or other
countries for data entry. Under this proposal, companies could
not do so unless they received authorization from each individual
whose information would be shipped. The prohibition would include
customer call centers where an individual’s personal information
is visible on a computer screen. The practical effect of this
legislation would make it impossible for companies to utilize
foreign services.
ID theft and privacy issues will continue to present challenges
for Florida businesses. It is important for us to monitor any
proposed changes to ensure a cost effective continuation of commerce. |
