LANSING – State Representative Fred Miller (D-Mount Clemens) today voted to pass a plan to help better protect Michigan residents from the fast-growing crime of identity theft and enable victims to obtain compensation when they spend thousands of dollars to get their lives back in order and restore their credit history.
"Thieves do not always burst into your home wielding a gun and demanding your wallet," said Miller. "More frequently these days, they often use tools like phones, computers and the postal system to steal something far more valuable than your wallet – your identity. Identity theft is one of the fastest growing crimes in Michigan, and consumers must take advantage of all the preventative measures they have in order to be protected."
Identity theft has surpassed drug trafficking as the No. 1 crime in the nation, according to the U.S. Department of Justice. The total cost of identity theft in the U.S. in 2006 was $49 billion. Victims paid about $4.5 billion of this, and the rest was paid by merchants and financial institutions. According to the Identity Theft Resource Center, about 10 million people are harmed by identity theft each year.
The key parts of the plan that passed the House today will:
- Allow victims of identity theft to file civil suits to be compensated for the money spent to repair their financial affairs and credit history, and require courts to order restitution for victims.
- Require businesses to have an identity theft prevention plan; failure to do so would result in a fine of up to $10,000.
- Require any data that includes unencrypted personal information to be destroyed when it is removed from the database of a business or agency.
"I know first-hand how much hard work goes into reclaiming your identity, and it can take years to repair your credit after your identity is stolen," said Miller, who is currently fighting to reclaim a stolen credit card. "This plan makes it easier for victims to recoup all the time and money they have spent to get their life back, and it requires businesses to help ensure their information is never stolen in the first place. I urge the Senate to act quickly and approve this plan."