Editorial: New crime needs new penalties

Friday, July 12, 2002 | 8:51 a.m.

It can happen in a small way -- a store clerk can copy down your bank card number and without too much difficulty nick your checking account for a couple hundred dollars. Or it can happen in a big way -- someone can assume practically your entire identity and drain your bank accounts of thousands. In both big and small ways, identity theft is a growing problem. In 2000, fewer than 300 identity-theft complaints were lodged in Nevada. But in 2001, the complaints jumped to more than 800, with 534 emanating from Las Vegas. A story in Thursday's Sun reported the experience of a Las Vegas postal worker, whose checking account was robbed of more than $4,600.

The growing use of electronic bill paying has led to a commensurate increase in electronic crime, and police, federal investigators and financial institutions are trying to keep pace. Banks have insurance covering such losses and they have procedures to quickly re-issue bank cards, stop payments, open new accounts and notify investigators. Nevertheless, the crime violates victims in a way that simple restoration of an account balance can never mend. Their privacy has been violated and their trust in electronic financial transactions will never fully return. The FTC reports that victims of identity theft, on average, spend 175 hours and $1,000 in out-of-pocket expenses to clear their names.

Banks and police agencies are doing their part. Now, it's time for Congress to do its part and pass the Identity Theft Penalty Enforcement Act currently before the U.S. Senate Judiciary Committee. Criminals are attracted to identity theft because their chances of getting quick cash are high and their chances of a harsh penalty if caught are low. More likely, they will get probation. Under the pending legislation, up to five more years behind bars would be added to the maximum penalty. We think prison stripes are just the right kind of new identity for such criminals.