For Release:
April 21, 2004
FTC Seeks Comments
on Proposed Identity Theft, Active Duty Alert Regulations
The Federal Trade Commission is seeking
public comment on proposed rules under the Fair and Accurate
Credit Transactions Act (FACTA) regarding further definition
of the terms “identity theft” and “identity
theft report,” the duration of active duty alerts, and
the appropriate proof of identity needed by consumers to block
fraudulent trade lines in their consumer reports, place or
remove fraud or active duty alerts, or obtain a file disclosure
containing a truncated Social Security number under certain
circumstances. FACTA, which was enacted on December 4, 2003,
and amends the Fair Credit Reporting Act (FCRA), gives identity
theft victims new rights to place “fraud alerts”
on their credit reports and work with creditors and credit
bureaus to “block” negative information appearing
in their credit files as a result of identity theft.
FACTA also allows military personnel to
place an alert on their credit report if they are deployed,
and allows consumers to request that a credit bureau truncate
their Social Security number when disclosing their credit
report to the consumer. The Act directs the FTC to make the
above-mentioned rules relating to these new rights. Comments
on the proposed rules must be received on or before June 15,
2004. At the close of the comment period, the Commission will
review the comments, modify the proposed rules as appropriate,
and issue the rules as final.
The Commission proposes that “identity
theft” be defined as a fraud which is committed or attempted,
using a person’s identifying information without lawful
authority and that “identifying information” have
the same meaning as the criminal statute’s “means
of identification.” Consumers need to use “identity
theft reports” to obtain an extended fraud alert on
their credit file and to block negative information resulting
from identity theft from appearing in their credit files.
To prevent misuse of identity theft reports for credit repair
scams, the FTC proposes to add two elements to the definition
of “identity theft report.” First, the proposal
would require that consumers allege the identity theft as
specifically as possible, and second, would allow credit bureaus
or creditors to request, within reasonable bounds, additional
information or documentation to help them determine if identity
theft actually occurred.
FACTA directs the FTC to determine the
duration of active duty alerts for military personnel, setting
a minimum of 12 months. The FTC proposes that 12 months is
an adequate duration that will cover the time period for which
the majority of service members will be deployed. The Federal
Register Notice states that military personnel who receive
extended deployments may place another active duty alert in
their file after the first alert expires if they feel they
need additional protection.
Finally, the Federal Register Notice addresses
what constitutes “appropriate proof of identity”
to block a fraudulent trade line, place or remove a fraud
alert, or obtain a file disclosure containing a truncated
Social Security number. The proposed rule would require credit
bureaus to develop “reasonable requirements” to
ensure that consumers are matched with their files and to
adjust what information is requested to prevent identifiable
risks of harm. The FTC suggests, using two examples, that
the “requirements” for a file match may entail
full name, full address, full Social Security number, and/or
date of birth, and for additional proof of identity, copies
of government-issued identification documents, utility bills,
and other current authentication methods such as answering
questions only the consumer would know.
Comments can be filed electronically at http://www.regulations.gov.
Commenters should select “Federal Trade Commission”
at “Search for Open Regulations,” locate the summary
of this Notice, click on “Submit a Comment on this Regulation,”
and complete the form. Written comments should refer to “FACTA
Identity Theft Rule, Matter No. R411011 ” on both the
envelope and the text, and should be mailed to the following
address: Post Office Box 1030, Merrifield, VA 22116-1030.
Please note that courier and overnight deliveries cannot be
accepted at this address. Courier and overnight deliveries
should be delivered to the following address: Federal Trade
Commission/Office of the Secretary, Room H-159 (Annex J),
600 Pennsylvania Avenue, N.W., Washington, DC 20580. Comments
containing confidential material must be filed in paper form.
Written comments must be received on or before June 15, 2004.
Comments on any proposed filing, recordkeeping, or disclosure
requirements that are subject to paperwork burden review under
the Paperwork Reduction Act should additionally be submitted
to: Office of Information and Regulatory Affairs, Office of
Management and Budget, Attention: Desk Officer for the Federal
Trade Commission. Comments should be submitted via facsimile
to (202) 395-6974 because U.S. postal mail at the Office of
Management and Budget is subject to lengthy delays due to
heightened security precautions.
The Commission vote approving
publication of the Federal Register Notice was 5-0.
Copies
of the Federal Register Notice are available from the FTC’s
Web site at http://www.ftc.gov
and also from the FTC's Consumer Response Center, Room 130,
600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The
FTC works for the consumer to prevent identity theft and fraudulent,
deceptive, and unfair business practices in the marketplace
and to provide information to help consumers spot, stop, and
avoid these problems. To file a fraud complaint, or to get
free information on any of 150 consumer topics, call toll-free,
1-877-FTC-HELP (1 877-382-4357), or use the complaint form
at http://www.ftc.gov.
The FTC enters Internet, telemarketing, identity theft, and
other fraud-related complaints into Consumer Sentinel, a secure,
online database available to hundreds of civil and criminal
law enforcement agencies in the U.S. and abroad.
MEDIA CONTACT:
Jen Schwartzman
Office of Public Affairs
202-326-2674
STAFF CONTACT:
Naomi Lefkovitz
Division of Planning and Information
202-326-3228
(http://www.ftc.gov/opa/2004/03/factafrn0421.htm)
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Related Documents:
16 C.F.R. Parts 603, 613, and 614:
Related Identity Theft Definitions, Duration of Active Duty
Alerts, and Appropriate Proof of Identity Under the Fair Credit
Reporting Act: Notice of Proposed Rulemaking and Request for
Public Comment.
- Text
of the Federal Register Notice
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