Romney Adds Own ID Theft to Series of Proposals Pending on Hill
By Amy Lambiaso for the State House News Service

Gov. Mitt Romney proposed a new law Wednesday that would giving prosecutors more tools to crack down on identity theft, increase fines associated with the crime, and give consumers more protections against a problem that is sweeping the nation.

Romney’s legislation was filed today after an internal task force of
district attorneys and other law enforcements officials reviewed the
state’s laws to spot “loopholes” and recommend stricter punishments to
deter identity thieves. His proposal joins several other bills filed by
Attorney General Thomas Reilly, lawmakers and consumer advocates aimed at preventing and prosecuting identity theft.

“Obviously a false identification can help somebody enter a country, it can
help somebody board a plane, it can help somebody gain access to a
sensitive facility such as the State House,” said Secretary of Public
Safety Edward Flynn. “It can also help people create an entire identity
for the purpose of creating a credit history, and that credit history can
be used to destroy other people’s credit.”

Pointing to the terrorist attacks of Sept. 11, 2001, Flynn said all the
terrorists who obtained access to airplanes that day had obtained driver’s
licenses legally, but by providing false information.

Identity theft became a federal crime in 1998, and the majority of states,
including Massachusetts, followed suit and passed laws relative to identity
theft shortly thereafter, according to the Identity Theft Resource Center,
a national non-profit organization that tracks such actions.

Romney’s bill, which he unveiled at a press conference here today with
Flynn and Consumer Affairs Director Beth Lindstrom, would toughen penalties and create a specific set of laws dealing with identity theft, which he said are needed to close the loopholes identified by the task force.

For example, an employee at the state’s Registry of Motor Vehicles
illegally converted 50 out-of-state licenses to Massachusetts licenses in
1998, earning roughly $500,000 from the recipients, Flynn said. Under state law, that crime was punishable by a $1,000 fine, he said.
“The punishment should match the crime,” he said.

Citing recent data released by the Federal Trade Commission, which tracks
claims of identity theft, Lindstrom said 9.5 million people nationwide had
their identity compromised last year, amounting to $52 billion in estimated
losses. Nearly 4,000 complaints from Massachusetts residents regarding
identity theft were filed with the FTC in 2004.

Two years ago, Romney himself was a victim of identity theft, when a
consumer watchdog group and the Boston Globe purchased the governor’s credit information and Social Security number. Rep. Paul Casey
(D-Winchester) also had his identity stolen in 2003, when a thief racked up thousands of dollars in bills, opening credit cards in Massachusetts and in Virginia.

“It’s horrible,” Casey, who did not attend the press conference, said in an
interview. “Thousands of people have been squeezed and put at a
disadvantage by this type of fraud.”

With the support and advice of the attorney general’s office, Casey has
filed several bills to tackle the problem, proposing to increase penalties
and require people to present more identification when applying for a
credit card at department stores or other retailers. Casey called Romney’s
proposal a “good start,” but said more coordination between local, state
and out-of-state police is required, and said any legislation must deal
with prevention measures as well, such as requiring more photo identification. Romney said he anticipates the Legislature changing certain aspects of his proposal.

“It’s pretty rare that we file a bill that we think has to be accepted as
is,” Romney said. “I’d be very disappointed, however, if any special
interest were able to step in and to remove the kinds of tough penalties
that are now going to be associated with this crime and to remove the
consumer protection that is also going to be associated with this bill.”
Sen. Jarrett Barrios (D-Cambridge), who is sponsoring a bill with MassPIRG, said Romney’s bill lacked enough substantive ways to protect consumers. The governor’s bill would allow consumers to freeze access to their credit reports from credit-rating bureaus if they believe their information had been compromised – a move Barrios said is too late.

“The governor is trying to close the door after the horse is already out of
the barn,” Barrios said. “It isn’t just enough to get tough on crime, you
need to get tough on the causes of crime.” Barrios said his bill would
allow people to put a freeze on their credit information at any time.
Romney’s legislation would also require companies to notify consumers
within 10 days when someone breaks into a company database, such as recent occurrences with LexisNexis and Bank of America, Lindstrom said.

The bill would add seven crimes to the list of felonies under state law:
using personal identification about another person with the intent to
defraud or commit a crime; possession of a false identification; providing
false ID to a police officer; using the seal of a department or agency
without authority; concealing material facts to obtain a valid ID;
possession of equipment that can be used to falsify documents; and
possession of five or more false identifications, with the intent to use
them illegally.

The crimes would range in punishment, from five years in prison or a $5,000 fine, to up to 20 years in prison and a $30,000 fine if the crime is
connected with another major felony, such as murder.
The newly-created Consumer Protection and Professional Licensure Committee intends to hold a public hearing on identity theft bills in June.