[Federal Register Volume 69, Number 41 (Tuesday, March 2, 2004)]
[Notices]
[Pages 9895-9896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4604]


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DEPARTMENT OF TREASURY


Public Comment on Formulating and Conducting a Study on the Use 
of Biometrics and Other Similar Technologies to Combat Identity Theft

AGENCY: Department of the Treasury, Departmental Offices.

ACTION: Notice and request for comments.

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SUMMARY: The recently enacted Fair and Accurate Credit Transactions Act 
of 2003 (FACT Act or Act) requires the Secretary of the Treasury ( 
Secretary) to conduct a study of the use of biometrics and other 
similar technologies to reduce the incidence and costs to society of 
identity theft by providing convincing evidence of who actually 
performed a given financial transaction. The Act also requires the 
Secretary to consult with a number of entities and the general public 
``in formulating and conducting the study.'' In order to fulfill its 
obligations under the Act, the Department of the Treasury (Treasury) 
seeks public comment on how Treasury should formulate and conduct the 
study.

DATES: Comments must be received at the specific address(es) listed 
below on or before April 1, 2004.

ADDRESSES: Because paper mail in the Washington, DC area and at 
Treasury is subject to delay, please consider submitting your comments 
by e-mail. Commenters are encouraged to use the title ``FACT Act 
Biometric Study'' to facilitate the organization and distribution of 
comments. All submissions must be in writing or in electronic form. 
Please send e-mail comments to [email protected] or 
facsimile transmissions to FAX Number (202) 622-2310 re: FACT Act 
Biometric Study. Comments sent by paper mail should be sent to: Susan 
Hart, Financial Economist, Office of Critical Infrastructure Protection 
and Compliance Policy, U.S. Department of the Treasury, Annex Room 
3174, 1500 Pennsylvania Avenue, N.., Washington, DC 20220, ATTN: FACT 
Act Biometric Study. Anyone submitting comments is asked to include his 
or her name, address, telephone number, and if available, FAX number 
and e-mail address. Treasury will consider all timely comments, and 
will make all comments in their entirety, including any personally 
identifying information such as name and address, available for public 
inspection and copying. Please do not submit confidential commercial or 
financial information. Comments may be inspected at the Treasury 
Department Library, Room 1428, Main Treasury Building, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220. Before visiting the 
library, visitors must call (202) 622-0990 to arrange an appointment. 
(Treasury reserves the right to display all comments in their entirety 
electronically via the Internet, subject to Treasury's assessment at a 
later date of the practicability of managing and maintaining such a 
channel of access in this instance.)

FOR FURTHER INFORMATION CONTACT: Susan Hart, Financial Economist, 
Office of Critical Infrastructure Protection and Compliance Policy, 
Department of the Treasury, (202) 622-0129.

SUPPLEMENTARY INFORMATION:

[[Page 9896]]

I. Background

    The President signed the FACT Act into law on December 4, 2003, 
Public Law 108-159, 117 Stat. 1952. The FACT Act amends the Fair Credit 
Reporting Act (15 U.S.C. 1681 et seq.), and will provide consumers, 
companies, consumer reporting agencies, and regulators with new tools 
that enhance the accuracy of consumers' financial information and help 
fight identity theft. These reforms make permanent the uniform national 
standards that support our credit markets, and institute new consumer 
protections.
    Section 157 of the Act provides that the ``Secretary of the 
Treasury shall conduct a study of the use of biometrics and other 
similar technologies to reduce the incidence and costs to society of 
identity theft by providing convincing evidence of who actually 
performed a given financial transaction.'' Section 157 further requires 
the Secretary to submit a report to Congress containing the findings 
and conclusions of the study, together with recommendations for 
legislative or administrative actions as may be appropriate, within 180 
days from the date of enactment of the Act. Section 157 also requires 
the Secretary to ``consult with Federal banking agencies, the Federal 
Trade Commission, and representatives of financial institutions, 
consumer reporting agencies, Federal, State, and local government 
agencies that issue official forms or means of identification, State 
prosecutors, law enforcement agencies, the biometric industry, and the 
general public in formulating and conducting the study.''

II. Request for Comments

    This request for comment is issued pursuant to the requirement in 
section 157 that Treasury consult broadly in formulating and conducting 
the study on the use of biometric and other similar technologies. 
(Other means of consultation in formulating and conducting the study 
will also be used.) Treasury seeks comment on the questions set forth 
below and requests that respondents label comments with the 
corresponding question number and letter to which the comment relates. 
Additional relevant comments are welcome.
    1. a. What range of biometric solutions could the private sector 
use to reduce the incidence and costs to society of identity theft by 
providing convincing evidence of who performed a given financial 
transaction?
    b. How are biometric technologies being applied now to reduce the 
costs and incidence of identity theft?
    c. What other technologies are being applied now to reduce the 
costs and incidence of identity theft?
    d. What biometric technologies could be applied in the future to 
reduce the cost and incidence of identity theft?
    e. Does the private sector have adequate incentives to adopt 
biometric and other technologies to reduce the costs and incidence of 
identity theft?
    2. a. What is the rate of adoption by the financial services 
industry of biometric solutions for the purpose of verifying or 
authenticating who performed a given financial transaction? By other 
industries?
    b. What is the rate of adoption of other similar technology 
solutions provided by the private sector for the same or similar 
purpose?
    3. What are the public's concerns with the use of biometrics?
    4. What are the costs of the use of biometrics? What are the risks 
of using biometrics?
    5. What are the tradeoffs for the consumer in using biometrics?
    6. What are the benefits to consumers of the use of biometrics?
    7. a. What has been the experience of industries that have used 
biometrics for the purpose of providing convincing evidence of who 
performed a given financial transaction? What has been the customer 
reaction?
    b. What has been the experience of industries that have used other 
similar technologies for the same or similar purpose? What has been 
customer reaction?
    8. What barriers are there to the greater use of biometric and 
other technologies to reduce the cost and incidence of identity theft?

    Dated: February 25, 2004.
Michael A. Dawson,
Deputy Assistant Secretary, Department of the Treasury.
[FR Doc. 04-4604 Filed 3-1-04; 8:45 am]
BILLING CODE 4810-25-P