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Contact: Deborah Sturm Rausch  518.473.9472|518.474.2896
 For Immediate Release: July 11, 2008

NYS Consumer Protection Board And Advocates Hail New ID Theft Law Plans Underway To Implement New Protections From Identity Theft

When Governor David A. Paterson signed his identity theft program bill into law this week, needed improvements in New York’s protections were achieved. Identity theft is the most common consumer fraud complaint in the United States and the fastest growing financial crime, affecting approximately 10 million Americans each year. New York State is 6th per capita in identity theft complaints in the nation, with nearly 20,000 complaints filed with the Federal Trade Commission (FTC) in 2007. Last year, as a result of fraud, New York consumers reported paying $46,103,842; a $5 million increase from the $41,798,588 reported in 2006. As such, identity theft has been a top agenda item for the New York State Consumer Protection Board (CPB).

“Identity theft is a crime that affects millions of New Yorkers,” said Governor Paterson, “and we need greater protections to lessen our vulnerability to identity thieves. To send a strong message to those criminals who use ‘skimmer’ devices to lift personally identifying information from credit or other cards, we have strengthened the law so that inappropriate possession of such a device is now an illegal offense warranting the charge of criminal identity theft.”

“In signing this new law, Governor Paterson is leading the way to reducing the number of barriers victims of identity theft and financial fraud face,” said Mindy A. Bockstein, CPB’s Chairperson and Executive Director. “These victims have an arduous task in repairing their financial record, credit rating and well being. They must receive important information, assistance and resources, as well as some measure of compensation for the time it takes to correct the violations against them, and the CPB is preparing to meet these needs.”

The CPB is statutorily responsible for monitoring the time and technology it takes to place and remove a Security Freeze, based upon a 2006 law giving consumers the choice to "freeze" or lock access to their credit report against anyone trying to open up a new account or to get credit in their name. Additionally, the Agency has worked closely with advocacy groups and others to develop materials and to form partnerships to advance identity theft prevention programs. The Agency also accepts complaints and conducts outreach to mitigate identity theft. In February 2008, after receiving hundreds of calls regarding identity theft, the CPB held a public hearing on the issue of the effectiveness and accessibility of the Security Freeze mechanism. The CPB, along with those who testified, stressed the importance of easy-to-use Security Freeze protections. Under the new law, consumers will be able to use a dedicated toll-free phone number or a secured Internet communication to place or lift a Security Freeze, instead of having to contact the credit reporting agencies by overnight or certified mail. Further, in 2009 consumers will be able to lift a Security Freeze within 15 minutes, and, by the year 2010, freeze their credit reports in one business day.

The CPB is gearing up to help educate consumers and industry about the following key provisions of the new law:
  • Safeguard Social Security numbers by restricting their use by employers, business or government for personal identification.

    The CPB will strengthen its partnerships with industry, the court system, the Department of Labor, and other State agencies to help advance compliance with the new guidelines and restrictions relating to the use, display and posting of the SSn. Additionally, these efforts will cover restrictions pertaining to embedding the SSn in the magnetic strips of ID cards.

  • Outlaw the possession of "skimmer" devices which can obtain personal identifying information from credit cards under circumstances where there is intent to use the device to commit identity theft.
    br> The CPB will be working with the business community and law enforcement to help inform the public of what to look for to protect themselves from “skimmer” use.

  • Further empower the Consumer Protection Board by authorizing the CPB to act as a liaison between the victim and any State or other governmental or non-governmental entities to help victims recover from the damages of identity theft, and promulgate rules and regulations to implement the program.

    The CPB’s Identity Theft and Mitigation Program will host a central repository of new and updated identity theft-related information to assist consumers and provide liaison and mediation services for consumers. Consumer advisors will intervene and troubleshoot in varied contexts, including with creditors, financial institutions, credit-reporting agencies, utilities and employers. The CPB will implement a new public awareness campaign to help reduce the incidence and impact of identity theft victimization utilizing various web-based and electronic resources, graphics and media. Further, the CPB will advance a train-the-trainer program to empower victim service providers, social workers, law enforcement, unions, senior citizen groups, clergy, educators, bankers and other stakeholders by teaching them how to identify and respond to victims of identity theft and fraud.

  • Strengthen aspects of the Security Freeze law to enable consumers to place or lift a Security Freeze via telephone or secure electronic means, reducing the amount of time it takes to place a freeze to one day in 2010, and to lift a freeze to 15 minutes, effective September 1, 2009. Further, the law prevents the use of the SSn or any portion thereof for creation of the password necessary to temporarily lift or permanently remove a freeze. Victims of domestic violence will also be able to place or lift a freeze free of charge.

    The CPB will create materials to advance business compliance and to assist consumers in understanding the process of placing, temporary lifting and removing a freeze as well as help them navigate the personal information protection process within Credit Reporting Agencies.

  • Enable victims of identity theft to obtain restitution equal to the value of the time they spend fixing the damage of identity theft.

    The CPB, in conjunction with victim service providers, will create new tools to help consumers track and determine the number of hours and the value of the time used to repair their credit standing due to identity theft.
“With the leadership of Governor Paterson, the Consumer Protection Board, and the Legislature, this new state law creates easy access to an essential identity theft tool,” said Lois Aronstein, State Director for AARP New York. “This legislation enhances the existing law providing a convenient way for New Yorkers to keep identity thieves from getting their hands on their personal credit information.”

Russ Haven, Legislative Counsel for New York Public Interest Research Group (NYPIRG), said “An important part of this consumer protection package is that it will make it easier for New Yorkers to freeze their credit reports, and that’s the best thing consumers can do to prevent them from becoming victims of identity theft. We appreciate that the Consumer Protection Board solicited our input early in the session, and that many of our recommendations found their way into the product.”

"With the passage of this law, New York demonstrates a real commitment to reducing the incidence of identity theft and providing meaningful assistance to the victims of this crime," said Mary Lou Leary, Executive Director of the National Center for Victims of Crime. "Victims will be able to receive restitution for the time they spend working to repair the damage of the identity theft, and assistance of a State office as they work with law enforcement and credit bureaus in the aftermath of this crime."

“We applaud Governor Paterson and the New York legislature for their leadership in addressing the serious threat of identity theft in New York State," said Chuck Bell, Program Director for Consumers Union, the publisher of Consumer Reports, based in Yonkers, NY. "This new bill wisely restricts the use of Social Security numbers by employers and public agencies, and improves the ability of consumers to place a security freeze on their credit accounts. We look forward to working with the New York State Consumer Protection Board to educate and inform consumers about the provisions of the new law, and other ways to protect sensitive financial information from theft or unauthorized disclosure."

Diane LaVigna-Wixted, Executive Director of the New York Credit Union Foundation said, “Together with members of the New York State Legislature as well as the Consumer Protection Board, we have been working to inform credit union members about the dangers of identity theft. The Foundation’s Identity Theft Awareness Campaign, now available statewide, focuses on educating New Yorkers on how to be safe and protect themselves from becoming the victims of fraudulent activity. We commend the State for its hard work toward achieving greater ID theft protections for all New Yorkers.”

The NYS CPB, established in 1970 by the New York State Legislature, is the State's top consumer watchdog and think tank. The CPB's core mission is to protect New Yorkers by publicizing unscrupulous and questionable business practices and product recalls; conducting investigations and hearings; enforcing the “Do Not Call” law; researching issues; developing legislation; creating consumer education programs and materials; responding to individual marketplace complaints by securing voluntary agreements; and, representing the interests of consumers before the Public Service Commission and other State and federal agencies.
To file a consumer complaint with the NYS Consumer Protection Board (CPB), call our toll-free hotline at 800-697-1220 or visit CPB’s website at www.nysconsumer.gov. In addition to the online complaint form, the website is home to important consumer safety information. To join the CPB’s Do Not Call Reminder list, send an e-mail to CPB's Do Not Call Reminder list