Report: As breaches make news, Mass. more vulnerable to ID theft

by Statehouse News Service

JULY 19, 2006 -- Security breaches in business and government operations have exposed the personal data of Americans about 90 million times in the past 18 months and Massachusetts residents are more vulnerable than others, according to a report released Monday morning by consumer groups.

The estimate, according to the Massachusetts Public Interest Research Group Education Fund, is based on a review of 200 publicly disclosed security breaches over the past year and a half that involved sensitive personal data being lost or stolen. The cases involve well-publicized breaches at The Boston Globe. Fidelity Investments, and the U.S. Department of Veterans Affairs.

While eradicating identity theft in the information age appears impossible, 36 states have laws aimed at prosecuting identity thieves and ensuring that consumers have the best chance to protect themselves if their personal information it inadvertently released. Other states have strict notification requirements and “security freeze” laws.

Massachusetts is not among those states and ID theft legislation on Beacon Hill remains hung up in committee – the House Ways and Means Committee – despite bipartisan support for it and longstanding support from Attorney General Thomas Reilly and the Romney administration.

Researchers at MassPIRG estimate that “hundreds of thousands” of Massachusetts residents have had their personal information exposed 1.8 million times since 2005. “Massachusetts is clearly lagging behind other states in protecting people from identity theft,” MASSPIRG consumer advocate Eric Bourassa said in a statement. “With two weeks left in the legislative session, state lawmakers urgently need to act.”

In March, the Committee on Consumer Protection and Professional Licensure approved identity theft legislation (H 4775), but it hasn’t moved since. The consumer advocacy group says “resistance” from credit reporting agencies, the banking and telecom industries, and retail stores is holding up the bill.

Formal legislative sessions end this year on July 31. For the rest of 2006, the Legislature will likely meet in informal sessions, where one legislator can block the advance of any bill. A new two-year legislative session begins in January 2007.

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