The government soon could have a new tool to help identity-theft victims restore their good names and credit, even when the crime’s tentacles extend beyond state lines.
Area police and prosecutors say the new law, which is just waiting for its final congressional blessing, will not only ease the burden on identity-theft victims but also help law enforcement investigate this rapidly growing crime.
"Overall, I’d have to say it appears to be a step in the right direction," Everett detective Sgt. Gary Woodburn said. "The more tools we have, the better off we’ll be."
The law gives victims quicker access to business records, which can be used by police to investigate the crime and by victims to help demonstrate that they are victims, not people trying to avoid paying a bill. This is the first standardized process for a person to establish that he or she is a victim of identity theft.
Once a business has agreed that an individual is a victim, it has 20 days to provide appropriate records to the victim. The law also allows law enforcement to act as the victim’s agent in obtaining business records.
This is particularly useful when the records are housed in another state, which they often are, said deputy Snohomish County prosecutor Craig Bray, who reviews and charges financial crimes such as identity theft.
"It will make it easier for police to investigate in certain cases," Bray said.
Police now often need a subpoena or search warrant issued in another state, with the help of local law agencies, before obtaining necessary records. Under the new legislation, "it will be simpler for the police to get the records they need to prosecute," Bray said.
The law also ensures that identity-theft victims can protect their credit rating from further damage by requiring credit-reporting agencies to block information on fraudulent transactions resulting from criminal activity. Also built into the legislation are protections for businesses.
The law eased through the Senate last week by Sen. Maria Cantwell, D-Wash. as an amendment to the Federal Credit Reporting Act, which both houses have passed. It is expected to make it through a joint conference committee, Cantwell said.
"This is the fastest growing crime in America, and we’re seeing more connection of information in a digital world," Cantwell said. Victims "have been seriously inured and it takes them years to clear their name."
In San Diego, a spokeswoman for the Identity Theft Resource Center, a national organization combating identity theft, said the new law is a "critical step" in helping victims of the crime recover rapidly.
Local detectives who investigate the crime are swamped with complaints. Linda Foley, co-founder of the Identity Theft Resource Center, said the average victim spends 175 hours trying to clear his or her credit records.
The Federal Trade Commission registered 161,000 complaints in 2002, and says that identity theft costs the average victim $1,000. Washington ranks eighth in the nation in the number of instances per capita.
Victims sometimes spend months or years fighting with collection agencies and creditors trying to straighten out their credit after an identity thief strikes.
There’s a financial impact as well as an emotional one, said Foley, who with her husband founded the Identity Theft Resource Center. The mainly volunteer organization has pushed for legislation like this.
Easing the ability of victims to get records within 20 days is important, Foley said, because "the primary investigator is the victim."
It’s also important that information be gathered quickly for a couple of reasons.
Identity thieves often are mobile, and a quick response means more of a chance of catching them. Also, the more information developed rapidly by the victim, the more likely police interest in the case won’t wane, Foley said.
"The faster you can react to it, the better chance you have" of catching the crook, said Detective Sgt. Matt Bottin, who heads a property crimes unit in the Snohomish County sheriff’s office.
Washington and California laws require police to file reports in the jurisdiction where the identity theft victim lives. Victims have access to them, and the reports are useful in proving that a fraud has been committed.
Most states don’t require local police to take reports, and Foley hopes Cantwell’s legislation will encourage more states to follow Washington’s and California’s lead.
Foley knows how much of an emotional strain being a victim can be. She was an identity theft victim, and that’s why she started her organization.
"It’s victims helping victims," she said. "When a victim says, ‘I think I’m going nuts,’ we can say: Yeah. I know the feeling."
Reporter Jim Haley: 425-339-3447 or haley@heraldnet.com.
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