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For all the personal heartache and inconvenience that identity theft crimes can bring to their victims, the irony is that identity theft laws just aren't that tough on the perpetrators. While identity theft crimes have struck nearly 30 million people during the last five years¹, many current identity theft laws amount to nothing more than the proverbial "slap on the wrist," with prosecutors only allowed to try identity theft criminals whose offenses result in at least $5,000 of damage or loss.² What's more, those same identity theft laws have certain geographic loopholes — further limiting prosecutors from going after identity thieves. For example, current laws state that personal information must be stolen from a computer through interstate or foreign communications. So that means if you live in New York State, and the identity thief who victimizes you also lives there, current identity theft law says that person can't be prosecuted.

When you consider that many identity theft victims know their perpetrators personally — with friends, co-workers and family members atop the list of would-be ID thieves — almost every identity theft scenario seems to favor the "bad guys," with overall arrest rates for identity theft-related crimes reported as lower than 5 percent³; by contrast, statistics released by the U.S. Department of Justice in September 2007 indicate that 15.8 percent of all property crimes resulted in arrests during 2006, while 44.3 percent of all violent crimes also resulted in arrest during that same period.⁴ Clearly, the numbers don't lie: For all the financial and emotional problems caused by identity theft, the punishment rarely seems to fit the crime. And that makes fighting back against identity theft that much more difficult.

Identity theft laws: A brief chronological history

Although the good news on identity theft crime includes a general downward trend since 2003², the laws still seem to regularly leave identity theft victims on the short end of things. While some experts say that the drop in overall identity theft negates the need for tougher laws, the fact remains that just one in 700 identity theft suspects is ever caught by federal authorities.5 If you took those numbers and applied them to other suspected felons — especially violent offenders — that would surely result in far fewer rapists and murderers behind bars, and a whole lot more of them out on the street.

Some lawmakers, though, seem to have discovered that not only can identity theft crimes be misclassified (and often thrown out or dismissed), they can also be subject to a large number of legal loopholes and technicalities. Perhaps that's why some of the laws that govern identity theft have been adjusted in recent years. The following offers a brief chronology of some of those legal changes:

1. The Identity Theft Prevention Act of 2001⁶ – The change in legal precedent was highlighted by a two-year increase in prison time for anyone committing "aggravated identity theft," including crimes related to false citizenship and the illegal purchase of firearms. Additionally, five more years of prison time would be imposed on offenders who attempted identity theft acts related to terrorism.
2. The Identity Theft Penalty Enhancement Act of 2004⁷ – This identity theft law, ratified in July 2004, added two years to prison sentences for criminals convicted of using stolen credit card numbers and other personal data to commit crimes. Additionally, violators who were convicted of using stolen data to commit "terrorist offenses" would get five extra years of jail time.
3. Anti–Identity Theft Presidential Task Force launched in May 2006⁷ – The presidential task force was aimed at three main areas of identity theft:
   • Law enforcement — Devised ways for law enforcement officials to make identity theft charges stick and prosecute offenders to the limit of the law.
   • Education — Developed programs that taught both businesses and private citizens effective ways to protect sensitive and personal information.
   • Government safeguards — The task force was designed to work directly with federal agencies, ensuring that the information stored there was better protected against identity thieves.
4. The Identity Theft Enforcement and Restitution Act of 2007⁸ – In October 2007, the U.S. Senate proposed a bill that would allow identity theft victims to seek restitution for their crime–related expenses. Along with the provision that would allow identity theft victims to seek financial restitution, the bill also addressed the need for prosecuting computer hackers committing online ID theft within the same state.

While the general consensus is that the proposed Senate bill could be a very significant step towards tightening up identity theft laws, the bottom line is that there are still a lot of problems convicting alleged identity thieves. And as of December 2007, the Senate bill was still under consideration, but no new official law had been ratified.

Something else to consider: Recent identity theft statistics indicate that, of all identity theft crimes where the method of obtaining information was actually known, nearly 70% of the stolen information was gathered offline, with only about 12% obtained through online means. And this presents yet another irony surrounding identity theft crimes: Although the laws to prosecute identity theft offenders have been steadily tightened in recent years, most of the anti-identity theft measures out there rely largely on technology — no doubt a product of the technical age in which we live. The irony, then, is that the large majority of identity thieves seem to prefer ripping people off the "old-fashioned way," relying on "dumpster diving" and the like to make their scores.

So while stopping identity theft may be somewhat easier for prosecutors moving forward, there is still a lot left to be done. It will take a lot to turn the turn the tables on identity thieves, but it's still possible. And you can do your part by doing everything you can to keep your personal information safe.

1. FinancialPrivacyNow.com - Fact Sheet about ID Theft
2. Identity stolen? Senators want thieves to pay for your troubles
3. Understanding Identity Theft
4. Uniform Crime Report: Crime in the United States, 2006
5. How Many Identity Theft Victims Are There? What IS the Impact on Victims?
6. Identity Theft Legislation
7. Bush Signs Identity Theft Bill
8. S. 2168: Identity Theft Enforcement and Restitution Act of 2007

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