[Congressional Record (Bound Edition), Volume 147 (2001), Part 7]
[Extensions of Remarks]
[Pages 9833-9834]
[From the U.S. Government Publishing Office, www.gpo.gov]



 INTRODUCTION OF THE SOCIAL SECURITY NUMBER PRIVACY AND IDENTITY THEFT 
                         PREVENTION ACT OF 2001

                                 ______
                                 

                         HON. E. CLAY SHAW, JR.

                               of florida

                    in the house of representatives

                          Friday, May 25, 2001

  Mr. SHAW. Mr. Speaker, today we continue our quest to protect the 
privacy of every American by cracking down on the fraud, abuse, and 
theft of Social Security numbers through the introduction of the 
``Social Security Number Privacy and Identity Theft Prevention Act of 
2001.''
  Beginning last year, the Ways and Means Subcommittee on Social 
Security has heard about the truly devastating effects of identity 
theft. Colonel and Mrs. Stevens of Maryland saw their Social Security 
numbers used on 33 fraudulent accounts accumulating $113,000 of bad 
debt. Mr. Bob Horowitz, a single father and small business owner from 
my district, saw his number used to open five fraudulent credit 
accounts. Months and years later these victims were still spending 
time, money, and energy to clear their names.
  This week we heard from two more of the countless number of victims 
who have had their identity stolen and their credit ruined. Nicole 
Robinson of Maryland had her personal information stolen by a worker 
for a business that maintained HMO data bases. Her identity thief 
charged $36,000 worth of goods in three months using Nicole's hard-
earned good credit. These crimes have impacted Nicole's ability to 
refinance her home, obtain credit, and purchase cellular phone service.
  Emeka Moneme of the District of Columbia had his personal property 
stolen at a gym in Ohio last year. He believes the crucial piece of 
personal identification his thief obtained was his Social Security 
number. This theft resulted

[[Page 9834]]

in 13 fraudulent accounts with a total of $30,000 in stolen credit.
  It's no wonder why, in a Wall Street Journal poll last year, 
respondents ranked privacy as their number one concern in the 21st 
century, ahead of wars, terrorism, and environmental disasters.
  When Social Security numbers were created 65 years ago, their only 
purpose was to track a worker's earnings so that Social Security 
benefits could be calculated. But today, use of the Social Security 
number is pervasive.
  We have literally developed a culture of dependence on the Social 
Security number. Businesses and governments use the number as the 
primary way of identifying
  Although Social Security numbers are used for many legitimate 
purposes, the wide availability and easy access to this very personal 
information has greatly facilitated Social Security number--related 
crimes and generated a growing concern for privacy. According to the 
Federal Trade Commission, Social Security numbers are a crucial piece 
of information used to commit identity theft.
  The occurrence of identity fraud against U.S. consumers has increased 
dramatically in recent years. Identity theft is considered the fastest 
growing financial crime in the country, affecting an estimated 500,000-
700,000 people annually. Allegations received by the Social Security 
Administration's Hotline involving potential fraudulent use of Social 
Security numbers for identity theft increased from 62,000 cases in 
fiscal year 1999 to over 90,000 in fiscal year 2000--almost a 50 
percent increase in just one year. In fact, the Sheriff's office of 
Broward County, Florida, my home county, recently said that the number 
of reported cases of identity fraud is up 3,000 percent in the past 
year.
  What's worse, the nightmare of identity theft continues for the 
victims years after their identity has been stolen. Studies show 
identity theft victims spend 2 years trying to remove an average 
$18,000 in fraudulent charges from their credit reports. Also, victims 
spent an average of 175 hours and $808 in out-of-pocket costs (not 
including legal fees) trying to fix their problem.
  Identity theft is such a concern for consumers that two of our 
nation's leading insurance companies now offer policies insuring their 
customers from financial losses associated with identity and credit 
card theft. Customer surveys found that internet-related liabilities 
were high on the list of losses most insurance companies have yet to 
address. One insurer's web site included statistics from the credit 
reporting agency, Trans Union, who reports receiving a 15-fold increase 
in calls with questions or complaints about identity theft from 1992 
(35,000 calls) to 1998 (554,450--over 1,500 calls per day).
  Clearly, there is a need for a comprehensive law that will better 
protect the privacy of Social Security numbers and protect the American 
public from being victimized. That is why last year, I, along with Mr. 
Matsui, Mr. Foley, Mr. Kleczka, and other Subcommittee members 
introduced H.R. 4857--the ``Social Security Number Privacy and Identity 
Theft Prevention Act of 2000.'' This legislation took a comprehensive 
approach to achieve this goal by addressing the treatment of Social 
Security numbers in both the public and private sectors.
  While H.R. 4857 was approved by the Committee on Ways and Means at 
the end of last year, it was not considered by the full House of 
Representatives before the end of the session, due to its referral to 
other Committees of jurisdiction who did not take action on the bill.
  Today, I re-introduce the ``Social Security Number Privacy and 
Identity Theft Prevention Act of 2001.'' This bipartisan, comprehensive 
legislation is very similar to last year's bill. In the public sector, 
the bill would restrict the sale and public display of Social Security 
numbers, provide for enforcement of the provisions, and establish civil 
and criminal penalties for violations.
  In the private sector, the bill would restrict the sale, purchase, 
and display of Social Security numbers, limit dissemination of Social 
Security numbers by credit reporting agencies, and make it more 
difficult for businesses to deny services if a customer refuses to 
provide his or her Social Security number.
  Based on the thoughtful comments we have received, this new 
legislation reflects a small number of fair and appropriate 
modifications, including the following:
  Since the Federal Trade Commission does not have jurisdiction over 
financial institutions, our bill would now authorize the U.S. Attorney 
General to issue regulations restricting the sale and purchase of 
Social Security numbers in the private sector.
  Similar to our provisions affecting the public sector, we make 
explicit our intent that the prohibition of sale, purchase, or display 
of Social Security numbers in the private sector would not apply if 
Social Security numbers are needed to enforce child support 
obligations.
  To help prevent other individuals from suffering the same tragic fate 
as Amy Boyer, we include a new provision that prohibits a person from 
obtaining or using another person's Social Security number in order to 
locate that individual with the intent to physically injure or harm the 
individual or use their identity for an illegal purpose.
  We have clarified the provision that would prohibit businesses from 
denying services to individuals who refuse to provide their Social 
Security number, including an exception for those businesses that are 
required by Federal law to submit the individual's Social Security 
number to the Federal Government.
  Mr. Speaker, I encourage all Members to co-sponsor this critically 
important legislation. We must act now to protect the privacy of 
Americans' Social Security numbers and to stop identity thieves from 
preying on those who have spent a lifetime achieving their good credit 
rating.

                          ____________________