    [Public Papers of the Presidents of the United States: George W. Bush (2004, Book II)]
    [July 15, 2004]
    [Pages 1346-1348]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on Signing the Identity Theft Penalty Enhancement Act
    July 15, 2004

        The President. Thanks for coming. Welcome to the White House.

    [At this point, the lights in the room flickered.]

        The President. Thanks for coming. [Laughter] Welcome to the White
    House. [Laughter]
        We're taking an important step today to combat the problem of
    identity theft, one of the fastest growing financial crimes in our
    Nation. Last year alone, nearly 10 million Americans had their
    identities stolen by criminals who robbed them and the Nation's
    businesses of nearly $50 billion through fraudulent transactions. The
    bill I'm about to sign sends a clear message that a person who violates
    another's financial privacy will be punished.
        The Identity Theft Penalty Enhancement Act also prescribes prison
    sentences for those who use identity theft to commit other crimes,
    including terrorism. It reflects our Government's resolve to answer
    serious offenses with serious penalties.
        I appreciate the members of my administration who worked on this
    important piece of legislation, particularly Cabinet members John
    Snow and John Ashcroft. I appreciate the Members of the Congress who worked hard
    on this legislation: Senator Orrin Hatch and
    Senator Jon Kyl, Senator Dianne
    Feinstein; and Members of the House,
    Chairman Senator Jim Sensenbrenner and John Carter from the great
    State of Texas. I want to thank the other Members of Congress who are
    here, members of both political parties. Thank you for coming. I thank
    those who are on their staffs who have worked hard.
        The crime of identity theft undermines the basic trust on which our
    economy depends. When a person takes out an insurance policy or makes an
    online purchase or opens a savings account, he or she must have
    confidence that personal financial information will be protected and
    treated with care. Identity theft harms not only its direct victims but
    also many businesses and customers whose confidence is shaken. Like
    other forms of stealing, identity theft

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    leaves the victim poor and feeling terribly violated.
        But the losses are not measured only in dollars. An identity theft--
    thief can steal the victim's financial reputation. Running up bills on
    credit card accounts that the victim never knew existed, the criminal
    can quickly damage a person's lifelong efforts to build and maintain a
    good credit rating. Repairing the damage can take months or years.
        Government has a responsibility to protect citizens from these
    crimes and the grief and hassle they cause. It's a solemn responsibility
    of our Government. I want to thank the Members of Congress for
    recognizing that responsibility.
        This good law is part of a broader effort we've waged in recent
    years. The U.S. Postal Inspection Service, the FBI, and Secret Service
    are working with local and State officials to crack down on the criminal
    networks that are responsible for much of the identity theft that occurs
    in this Nation. The Federal Trade Commission is training local law
    enforcement in the detection of identity theft. The Commission has set
    up the ID Theft Data Clearinghouse, which keeps track of complaints
    across the country and provides those records to prosecutors seeking to
    take down organized rings.
        Last December, I signed the Fair and Accurate Credit Transactions
    Act, which established a national system of fraud detection so that
    identity thieves can be stopped before they run up tens of thousands of
    dollars in illegal purchases. Thanks to this law, victims can make one
    phone call to alert all three major credit rating agencies to report the
    crime and to protect their credit ratings.
        The law I sign today will dramatically strengthen the fight against
    identity theft and fraud. Prosecutors across the country report that
    sentences for these crimes do not reflect the damage done to the victim.
    Too often, those convicted have been sentenced to little or no time in
    prison. This changes today. This new law establishes in the Federal
    criminal court the offense of aggravated identity theft. And someone
    convicted of that crime can expect to go to jail for stealing a person's
    good name.
        These punishments will come on top of any punishment for crimes that
    proceed from identity theft. For example, when someone is convicted of
    mail fraud in a case involving stolen personal information, judges will
    now impose two sentences, one for mail fraud and one for aggravated
    identity theft. Those convicted of aggravated identity theft must serve
    an additional mandatory 2-year prison term. Someone convicted of
    aggravated identity theft, such as using a false passport in connection
    with a terrorism case, would receive an additional prison sentence of 5
    years. In addition, judges will not be allowed to let those convicted of
    aggravated identity theft serve their sentence on probation.
        This law also raises the standard of conduct for people who have
    access to personal records through their work at banks, government
    agencies, insurance companies, and other storehouses of financial data.
    The law directs the United States Sentencing Commission to make sure
    those convicted of abusing and stealing from their customers serve a
    sentence equal to their crimes.
        What I'm telling you is, this is a good law. And I appreciate you
    working hard to see to it that it made it to my desk. Because of this
    act of Congress I sign today, the guilty will be certain to be punished.
    That's good for our consumers. It's good for our economy. And it's good
    for the cause of justice.
        Welcome to the White House.

    Note: The President spoke at 10:52 a.m. in the Roosevelt Room at the
    White House. The Office of the Press Secretary also released a Spanish
    language transcript of these remarks. H.R. 1731, approved July 15, was
    assigned Public Law 108-275.

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