PROTECTING THE ELDERLY FROM IDENTITY THEFT

Identity theft is the fastest growing white collar crime in the United States. The Privacy Rights Clearinghouse (PRC) estimates that 700,000 Americans are victims of identity theft each year. This statistic represents an explosive growth in crime numbers, increasing an average of 40 percent per year over the past several years. n traditional fraud schemes, prospective victims are contacted directly by criminals who use lies to persuade the victims to part with their money. Identify theft, however, is more insidious because it requires no such direct communications. Simply doing things that are part of everyday routine — charging dinner at a restaurant, submitting personal information to employers or government agencies, throwing away credit card solicitations received in the mail, or ordering merchandise over the Internet on unsecured sites — may give identity thieves ample opportunity to gain access to the personal data needed to commit identity theft.

While anyone can be the victim of identity theft, seniors are among the most vulnerable to this crime, and the number of seniors who have become the victims of identity theft is growing rapidly. Reported incidents among those aged 60 years and older skyrocketed by a staggering 218 percent between 2000 and 2001. These figures are likely to continue to grow as America's elderly population increases.

Some of the very achievements that seniors have worked for their whole lives contribute to this vulnerability. For example, their often excellent credit make the elderly a particularly appealing target for identity thieves. Many seniors have strong credit ratings, earned over the years by faithfully paying their bills on time. This good credit is abused by identity thieves who take out loans, sign leases, or open bank or credit card accounts and run up bills in the elderly person's name. In a very short amount of time, a lifetime's worth of solid credit — along with the pride and dignity it brings — can be ruined.

Other aspects of seniors' lives make them more vulnerable to the tactics used by identity thieves. Some seniors are simply unaware of the threat of identity theft posed by everyday activities as well as by technologies such as the Internet. Consequently, not only are they unable to take simple preventive measures, but also they may be unaware that their identity has even been stolen for some time. Moreover, fraudulent telemarketers take advantage of seniors who live alone by seeming to offer friendship when their true purpose is to pump the elderly person for personal information.

As the chairman of the Permanent Subcommittee of Investigations (PSI) during my first four years in the Senate, I made it a priority to strengthen consumer protections by exposing emerging consumer frauds. Two years ago, I chaired a PSI hearing that examined the increasing availability of false identification and credentials such as driver's licenses, birth certificates and Social Security cards over the Internet.

One of the Subcommittee's findings was that false identification facilitates a host of other crimes such as credit card, bank fraud, and identity theft. One witness who used false identification documents to aid in stealing others' identities testified that not only was he able to gather personal information about his victims online, but he was also able to download all the false identification documents he needed online as well.

To help remedy this problem, I authored the "Internet False Identification Prevention Act of 2000," which became law in December 2000. This Act makes it easier to prosecute those criminals who manufacture, distribute, or sell counterfeit identification documents by closing the legal loopholes that criminals used to shield themselves.

This is a good first step. It is also critical to increase awareness among seniors, their families, and their caregivers so that such schemes can be prevented. I recently participated in a hearing of the Special Committee on Aging to hear from seniors who were victims of identity theft. In addition, I introduced legislation designating the week of August 25, 2002, as "National Fraud Against Senior Citizens Awareness Week." The Senate unanimously passed this legislation, and consumer and senior groups, as well as the United States Postal Service, will sponsor events to raise public awareness among seniors.

In the meantime, the Postal Service offers the following advice on how to prevent identity theft that includes: promptly removing mail from your mailbox after delivery; depositing outgoing mail in post office collection mailboxes; never giving personal information over the telephone, such as your Social Security number, date of birth, mother's maiden name, credit card number, or bank PIN code, unless you initiate the phone call; shredding pre-approved credit applications, credit card receipts, bills, and other financial information; emptying your wallet of extra credit cards; and never leaving receipts at bank machines, bank counters, or trash receptacles. Good advice for all of us — regardless of our age!