Strengthening Credit Freeze Legislation in the States: Empowering Consumers to Prevent Economic Loss from Identity Theft

This article discusses the need for laws that will help to protect consumers from economic loss caused by identity theft. It reviews the nature of the identity theft schemes, the economic losses caused and the broad extent of identity theft. Second, the article reviews exisiting law that have been largely ineffective. Third, the articles reviews the vulnerabilities of existing identification systems and risky lending practices that enable identity theft. Finally, the article proposes new state credit freeze legislation focused on economic loss prevention. Permitting consumers to obtain a security freeze on their credit reports, thereby disrupting ability of identity thieves to open new accounts, is the most feasible and effective means to prevent economic loss. It also is an important first step toward further strengthening consumer control over their credit information.