Wednesday, March 16, 2005 | 10:54 a.m.
At least 10 state senators are supporting an anti-identity-theft bill that aims to ensure that credit agencies are notified that an individual's identity has been compromised and places restrictions on what kind of information that credit agency could share with others.
The bill, introduced by Sen. Bob Beers, R-Las Vegas, in late February, also allows consumers to place a "warning" on their credit information that would require credit reporting agencies to verify the individual's identity before making transactions or face penalties.
Companies that don't comply could face penalties, according to the bill.
The bill, SB 80, is getting increased attention in light of the burglary of a Nevada Department of Motor Vehicles in North Las Vegas on March 7. Burglars netted a computer with driver's license information, Social Security numbers and dates of birth for 8,738 people, and authorities expect the information will be used for massive identity theft and consumer fraud.
"There is currently no existing law to make an organization that provides information used in identity theft liable for damages," Beers noted via e-mail Tuesday.
If it was currently law, the proposed legislation probably would not have affected the DMV, however, because governmental immunity would likely have come into play. But it would have provided a tool to help the thousands of people who are now at risk of identity theft as a result of the DMV theft.
The bill allows consumers to place warning flags in their credit reports if they believe they could be the victims of identity theft. This would help prevent credits, loans and services from being approved in an individual's name without his or her approval.
The bill has gained co-sponsorship from Republican and Democratic senators, including Sen. Steven Horsford, D-Las Vegas.
Horsford said he was particularly interested in the anti-identity theft bill because the DMV burglary took place in his senate district. He has recently requested that the chairman of the Senate Transportation Committee and Homeland Security Committee, Sen. Dennis Nolan, R-Las Vegas, conduct a hearing on the burglary.
"This bill is important because individuals who feel their identity or credit worthiness is at risk deserve to have a remedy to protect themselves," Horsford wrote in an e-mail to the Sun. "This provides some protection for the consumers, especially when there is an event such as the DMV break-in where a person's identity is known to be a risk."
But according to one credit service agency, many of these protections are already in place and could add too many requirements for credit reporting agencies.
Dan Carlson, president and owner of Credit Data Services, a local credit service provider, said that his company does not release any personal information unless they have written approval from the consumer every time information is requested.
He added that the bill could hinder reporting agencies from getting proper credit information to those who ask by placing "freezes" on the information.
"It's going to put a huge burden on credit reporting agencies," Carlson said.
He did agree, however, that the bill could be one more useful tool to protect identities of consumers and their credit history.
"These crooks find any weakness in the system to get information," he said.
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