Representative Costello Praises New Identity Theft Law

Mandatory notification and security freeze highlight bill to protect consumers

The bill, House Bill 4018, includes mandatory and immediate notification to consumers if their personal information is lost by any company doing business in Massachusetts or any state agency. The Attorney General’s office, the Division of Banks and the Office of Consumer Affairs and Business Regulations must also be notified if a breach occurs.

The legislation also enables consumers to create a permanent credit freeze on their credit reports so that identity thieves cannot create new lines of credit with stolen personal information. Representatives Michael Rodrigues, William Straus and Costello sponsored the legislation.

“Massachusetts residents have gone too long without the adequate protections against criminals who seek to perpetrate financial crimes by using stolen personal information and by creating false identities,” said Rep. Costello. “In our modern society, so much of our personal information is widely available at a moment’s notice. This bill ensures that all parties take the appropriate precautions to safeguard personal information, that consumers are notified if their information is lost and that they have the tools to protect their financial well-being if their information is stolen.”

The identity theft legislation implements strict disposal requirements for companies that collect personal information, including requirements to encrypt of electronic data and to destroy written records with personal information. Consumers will also be able to obtain a police report from their local municipality if they are victims of identity theft, no matter where the crime takes place.

“Identity theft is a crime we hear more and more about every year,” Costello said. “Last year, it was the Department of Veteran Affairs and The Boston Globe. This year it was TJX Companies. This bill is a strong response to the breaches we hear about in the news every day and similar to legislation passed by many other states.”

According to the Federal trade Commission, there are 10 million victims of identity theft every year, costing consumers and businesses $52 billion a year. In the past 2 years there have been security breaches at Choicepoint, Bank of America, the Department of Veterans Affairs, The Boston Glove and TJX. It is estimated that the financial information of over 90 million Americans has been compromised by security breaches.

The bill will now be sent to Senate.