Identity Theft and Assumption Deterrence Act of 1998

Title 18 USC 1028, as amended by Public Law 105-318, The Identity Theft and Assumption Deterrence Act of 1998

The Identity Theft and Assumption Deterrence Act became law on October 30, 1998, as a response to the growing problem of identity theft. The Identity Theft Act confronts identity theft in three main ways.

1. It charges the Federal Trade Commission (FTC) with creating a central repository for identity theft complaints. As a result, the FTC created the Identity Theft Clearinghouse. The Clearinghouse logs consumer complaints for use by law enforcement agencies.
2. It mandates that the FTC provide victim assistance and consumer education. The FTC needed to establish procedures to:
   • Log consumer reports of identity theft,
   • Provide informational materials to victims, and
   • Refer victims to other agencies that could help them such as the appropriate law enforcement agencies and the national consumer reporting agencies;
   
   
3. It fortifies criminal laws governing identity theft, making identity theft a federal crime punishable by up to 15 years in prison.

What is identity theft?

Identity theft is knowingly transferring or using someone else’s means of identification without their knowledge or approval with the intent to aid or abet any unlawful activity.

Who is affected?

The short answer is that everyone is affected by identity theft. This crime affects individuals, who may suffer psychological as well as monetary damages; businesses, as they must find ways to protect their customers from identity theft while not falling prey to it themselves; and it affects the nation as a whole, as millions of dollars are spent every year preventing and recovering from identity theft.

Who are the victims?

One of the main thrusts of the Identity Theft Act is to address victims’ rights. Consumers who suffer identity theft are now regarded as true victims. Up until the Identity Theft Act was passed, only creditors who had lost money were considered victims.

Victims of identity theft, or anyone wanting education on how to prevent identity theft, can call the FTC’s toll-free hotline: 1-877-ID THEFT (438-4338). Specially trained counselors will answer consumers’ questions and help them solve identity-theft related problems.

Where can I find more information?

The government has a website with resources on identity theft at www.identitytheft.gov. In addition, the Federal Trade Commission offers resources at www.ftc.gov/bcp/edu/microsites/idtheft.