Indiana Legislation Penalizes ID Thieves

An Indiana bill that would strengthen protections against identity theft is poised to win final approval from the Indiana General Assembly and move to the governor’s desk.

House Enrolled Act 1121, the identity-theft protection legislation, already has passed once in the Indiana House and state Senate; and a concurrence vote in the House is anticipated soon.

“House Enrolled Act 1121 goes a long way toward restoring the good name of an identity theft victim. Also, it more harshly penalizes those individuals who, out of greed, would steal the identities of innocent strangers or even their own children in order to commit fraud,” state Attorney General Greg Zoeller said.

House Enrolled Act 1121 would do several things:

• Formally establish the Identity Theft Unit. A team of attorneys and investigators who investigate ID theft complaints and assist victims now operates within the Office of the Indiana Attorney General. Created administratively in January 2008, the Identity Theft Unit now will be established by statute as a permanent part of the office, under the bill. To inform the public on how to spot identity theft, minimize the risk of becoming a victim and recover from the crime, the bill also authorizes the Identity Theft Unit to start a consumer-education program.
• Make synthetic identity deception a crime. Stealing someone’s identity already is illegal, but ID thieves often will create a fictitious identity by combining the details of multiple people into a hybrid, nonexistent person. The bill creates the new crime of “synthetic identity deception,” a Class D felony, potentially punishable by up to three years in prison.
• Strengthen the penalty for stealing a child’s identity. A parent who uses their child’s personal information to commit identity theft now will face a possible Class C felony charge, punishable by a potential two to eight years in prison.
• Create recovery tools for victims. Identity-theft victims often have difficulty establishing new credit or utility service because of the damage to their credit histories. The bill gives Hoosiers the ability to go to court and obtain a declaratory judgment, a legal document that in essence says the person was an innocent victim of identity theft, in order to correct their record. Meanwhile, the bill prohibits denying someone credit or utility service solely for being an identity theft victim.
• Enhance personal information security. Businesses will be required to implement and maintain reasonable security procedures for their documents, records and electronic devices containing customers’ personal information. Violators who carelessly discard such records without shredding or incinerating them first could face a fine of up to $5,000 per incident, plus the costs of investigating and litigating the case. In case of a security breach, businesses will be required to notify the attorney general’s office.
• Prohibit sloppy or unfair business practices that can lead to ID theft. Creditors will have to use reasonable procedures to verify the identities of credit applicants. Extending credit using unsolicited checks or credit cards sent to individuals who haven’t applied for credit will be prohibited.

“All too often there are disturbing instances where Hoosiers’ confidential personal information is left unsecured and exposed. Businesses and consumers alike must educate themselves on the need to shred or destroy sensitive documents,” Zoeller said. “Identity thieves who gain access to such information can destroy a person’s good credit.”

Source: AG

Topics Legislation