Fergie's Tech Blog

Schneier: The Anti-ID-Theft Bill That Isn't

Bruce Schneier writes on Wired News:

California was the first state to pass a law requiring companies that keep personal data to disclose when that data is lost or stolen. Since then, many states have followed suit. Now Congress is debating federal legislation that would do the same thing nationwide.

Except that it won't do the same thing: The federal bill has become so watered down that it won't be very effective. I would still be in favor of it -- a poor federal law is better than none -- if it didn't also pre-empt more-effective state laws, which makes it a net loss.

Identity theft is the fastest-growing area of crime. It's badly named -- your identity is the one thing that cannot be stolen -- and is better thought of as fraud by impersonation. A criminal collects enough personal information about you to be able to impersonate you to banks, credit card companies, brokerage houses, etc. Posing as you, he steals your money, or takes a destructive joyride on your good credit.

posted by Fergie @ 4/20/2006 06:05:00 AM