Editorial: Tracking identity theft

Wednesday, May 31, 2006 | 7:23 a.m.

While banks, credit card companies and government entities aggressively market online consumer transactions, thieves are finding new ways to swipe identities - some of which investigators of such crimes are just discovering.

According to a recent story by The New York Times, criminals in the Phoenix area stole identities from people whose names, addresses, bank account numbers and signatures were publicly accessible through divorce records posted on the county recorder's Web site.

It is hard to keep track of what all entities post publicly, investigators told the Times. According to a 2003 Federal Trade Commission survey, about one in 30 Americans had their identities stolen the previous year. Losses were estimated at $48 billion.

Consumer advocates say a huge part of the problem lies with banks and credit card companies that offer instant, nearly anonymous access to credit. Personal identification numbers (PINs) or fingerprint verification for new accounts and bans on mailings that include blank checks could curb a large part of the problem. But banking and credit industry officials say consumers don't want to delay transactions for such measures.

But the truth is the financial industry has little to gain by making credit more difficult to obtain.

And protecting one's identity falls on the consumer's shoulders. Even those who can prove their Social Security numbers are likely within a stolen pool - such as the 26.6 million veterans whose information was taken home by an employee without authorization - are not allowed to freeze or flag accounts until someone else has actually used the numbers. By then, it can be too late.

Banks, credit card companies and government agencies must do a better job of keeping personal information secure by limiting who has access to it . There is no excuse for someone's bank account or Social Security numbers to be accessible to the public.