CLE program looks at changes in the law surrounding identity theft

Computer system breaches at several data companies have put the financial information of millions at the hands of would-be identify thieves. Identity theft - crimes where individuals steal personal information such as Social Security numbers, credit card information and drivers license numbers - is, for the sixth year running, the top consumer complaint received by the Federal Trade Commission. Losses reported from the 685,000 consumer complaints run into $680 million.

A recent Nationwide Mutual Insurance Co. study revealed that criminals are more likely to target the checking accounts and other financial data of African Americans and Hispanics, and that those two groups generally take a month and a half longer than the general population to uncover the theft.

What rights do victims have vis-à-vis the companies that have had their systems broken into? And how do they go about restoring their credit history? Do you know enough about identity theft so that you could direct your client appropriately?

An article in the March issue of the ABA Journal, "Stolen Lives," is background reading for the March 2006 ABA Connection teleconference, "The Identity Theft Crime Wave." The article reveals that although the primary victims of identity theft are the holders of the financial information - the financial institutions and retail establishments - rather than those whose identity is stolen, they have been shielded from responsibility for the losses borne by the individuals. But according to the article, movement is afoot to change the legal landscape. States are beginning to write new laws about the responsibilities of holders of financial information, and the FTC has become more active in enforcing privacy rules through Gramm-Leach-Bliley.

"The Identity Theft Crime Wave" will be available online, free to ABA members, for another two weeks.

The Connection TeleConference Series is offered each month, with an accompanying article in the month's ABA Journal. The April 2006 topic is " The Price is Right: Issues in Valuation." You can find the schedule through June online here.

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