New Michigan Identity Theft Law to Protect Citizens & Combat Growing Problem
The Governor of Michigan signed a bill last week that would help protect its citizens from identity theft, a growing problem which has been estimated to affect 10 million people per year!
Governor Jennifer M. Granholm signed Senate Bill 309 requiring Michigan residents to be notified if there is a security breach regarding their personal information, which includes social security numbers, drivers license numbers and financial information.
The bill will officially take effect in early July, from which failing to notify a security breach to a consumer could result in a fine up to $750,000.
Granholm expressed her confidence in the new law serving as a foundation for state legislators to address other identity theft issues.
In the past, Granholm has called for similar legislation which would also allow Michigan residents to freeze their credit reports.
Michigan currently does not have a freeze statute.
This new Michigan law is just another example of how states are taking identity theft more seriously.
25 states have legislation allowing consumers to freeze their credit reports. In only five of those states, a consumer may only do so if he or she can prove that identity theft has taken place.
These recent legislative reactions to identity theft come at a time when figures at the Identifty Theft Resource Center truly reveal the problem.
- Department of Justice statistics show that identity theft is passing drug trafficking as the number one crime in the United States.
- The Justice Department charged 226 defendants with identity theft during 2005 and that number was surpassed in the first six months of 2006. 432 defendants were charged with identity theft in just the first half of 2006.
- When breaking down the 10 million people affected each year, identity theft victimizes 19 people per minute.
- A Network Computing study estimates that identity theft cost U.S. consumers and businesses $56.6 billion in 2005.
If you believe you've been victimized by identity theft and need to know about the laws in your state, or are just wondering about things to be aware of with identity theft, speak to a lawyer in your area.