Stop ID Thieves

IDENTITY THIEVES and perpetrators of credit card fraud are trolling the state in search of vulnerable people and information systems, and the Legislature needs to step in and clamp down. Good defenses can be built, provided the lawmakers put the concerns of consumers above those of companies and the credit industry.

Several bills and strategies are scheduled to be discussed today at a State House hearing of the joint committee on consumer protection. Prior attempts to pass an identity theft bill collapsed during disputes over how stringent reporting requirements should be after a company suffers a data breach and what fees, if any, should be required of consumers seeking to restrict access to their credit reports. But with every major breach, such as the stunning theft of more than 45 million credit and debit card numbers from the Framingham-based TJX Cos., it becomes increasingly clear that lawmakers should adopt the strictest consumer protections.

Massachusetts residents should be allowed, at no cost, to place a security freeze on their credit reports at the three major companies used by lenders to verify credit. It's tough enough to contend with unauthorized credit card charges. But consumers can at least detect such charges on a monthly bill and demand the built-in protections offered by the credit card companies. The bigger trouble starts when thieves steal information, such as Social Security numbers, to create parallel identities and use them to open new credit card accounts or make major purchases. The ability to freeze one's credit reports at the first sign of trouble is the best defense against such identity theft. And there is no justification for charging the consumer a fee when the breach can be blamed on a company's failure to protect electronic or hard-copy data.

The strictest security freeze provision, however, is of marginal value if customers don't know a breach has occurred. Some companies argue that they shouldn't be saddled with notice provisions unless there is strong evidence that identity theft is likely to follow. But consumers, not CEOs, should make that call. After all, at least a month passed before TJX notified consumers of the largest reported breach of card data in US history.

The Legislature won't lack for information, including testimony on model ID theft legislation from Attorney General Martha Coakley. The best bill lawmakers are likely to see, one that includes a no-cost security freeze for consumers, is the collective product of the nonprofit Massachusetts Public Interest Research Group, Senator Jarrett Barrios of Cambridge, and Representatives Michael Costello of Newburyport and William Straus of Mattapoisett.

In a state thick with identity thieves, the Legislature must distinguish itself with a strong bill