LANSING – State Representative Bob Constan (D-Dearborn Heights) today announced that a plan to fight identity theft by allowing residents to place a security freeze on their credit report passed the House of Representatives on Tuesday. The legislation also prohibits a credit-reporting agency from releasing or using information without proper authorization.
"Identity theft is rising faster than any other crime, and we must take action to protect our residents from becoming victims," said Constan, who voted for the plan. "Giving our residents the power to keep their personal financial information on lockdown will shield them from becoming victims."
The legislation features security provisions including a personal identification number (PIN) that gives users easy access to their personal and confidential credit information.
According to the Identity Theft Resource Center, 10 million people are harmed by identity theft each year. That means about 19 individuals become identity theft victims every minute. According to the U.S. Department of Justice, identity theft has surpassed drug trafficking as the No. 1 crime in the nation and costs businesses and consumers billions of dollars each year.
The bill combats this crime by locking down unsecured access to consumers' credit information, limiting security breaches. The bill lets consumers freeze all accounts, limiting access to those records through the sole use of the consumers' PIN. The freeze will remain in effect on all accounts through the three official credit reporting agencies until the consumer chooses to lift it.
"This plan gives our consumers the tools they need to safeguard their identities," Constan said. "As the crime of identity theft spreads faster and faster, our laws must keep pace. This plan will give our residents the protection they need."