[Weekly Compilation of Presidential Documents Volume 40, Number 29 (Monday, July 19, 2004)]
[Pages 1305-1307]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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

[[Page 1306]]

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 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.

[[Page 1307]]

    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.

[The President signed the bill.]

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.