Fed’s Annual Report on Identity Theft: Effective Enough?

Is the Government Doing Enough?

In the past year alone, more than 9 million Americans were victims of identity theft. That staggering statistic begs the question: Is enough being done to protect you from this pervasive crime? The government has just released its annual answer to that question in its 2008 Identity Theft Task Force Report. This report was created by "The President's Special Task Force on Identity Theft"—a group comprised of leaders from 15 different federal departments and responsible for naming and implementing strategies that crack down on identity theft. That's a pretty tall order: Does a bureaucracy notorious for moving at a snail's pace really have a chance against agile, ever-evolving identity thieves? Sure, the task force boasts a 26% increase in the number of convictions of perpetrators between 2006 and 2007, and the number of identity theft victims has decreased almost 6% between the two years. But as identity thieves get smarter and sneakier, can we count on that trend to continue?

What's in the Report

The report details what is currently being done and what should be done in the future to protect data, assist victims of identity theft, and increase prosecution of perpetrators.  In total, there are 31 recommendations. These range from small, concrete steps to large-scale policy changes. Included in the mix are directives to:

• limit the unnecessary use of social security numbers in both the public and private sectors;
• educate the public about the dangers of identity theft through mailings, brochures, and the internet (mainly through www.idtheft.gov);
• give grants to organizations that assist victims of identity theft;
• propose legislation that increases penalties for identity thieves;
• help law enforcement officials to better understand identity theft and how to assist its victims;
• and work with other countries to develop identity theft laws that are at least as comprehensive as ours.

Many of the recommendations have already been put into effect to some degree, while others are still just words on paper. It's encouraging to see the government address the complexities of identity theft, but seems a stretch to think the various federal departments and agencies will be efficient or accountable enough to make momentous strides. The task force report points out that its recommendations are primarily aimed "at improving the federal government's response to identity theft" and that "everyone—consumers, the private sector, and federal, state, and local governments—has a role to play in fighting this crime."

What More Can Be Done?

We can't rely solely on the government's efforts to protect us. The more immediate weapon in this battle is the vigilant consumer. Identity thieves will continue to search for and find vulnerabilities in data security systems. And it's nearly impossible to maintain full privacy of your personal information in this day and age. But a proactive consumer can reduce the risk of becoming an identity theft victim by recognizing phone and internet scams, protecting personal information and credit cards as much as possible, and choosing complex ATM and online passwords. It's also crucial to review your credit report regularly and quickly alert the appropriate parties if anything suspicious pops up to minimize the extent to which an identity thief can wreck your credit. Your actions as a careful consumer—coupled with the government's continued efforts—can go a long way in protecting you from identity theft.