The Identity Theft and Assumption Deterrence Act (ITADA), 18 U.S.C. § 1028, prohibits the unauthorized use of another person’s identification documents. This federal statute affects individuals whose personal information has been compromised, resulting in financial losses exceeding $1 billion annually.
The Fair Credit Reporting Act (FCRA), effective October 1996, sets a 7-year limit on credit reporting of identity theft-related debts.
Identity Theft Definition and Framework
The ITADA defines identity theft as the transfer, possession, or use of a means of identification with the intent to commit or aid in unlawful activity, punishable under 18 U.S.C. § 1028 with fines up to $250,000 and imprisonment for up to 15 years. In plain terms, this means that individuals who use another person’s identification documents for financial gain can face significant penalties. The statute applies to various forms of identification, including social security numbers, driver’s licenses, and credit card numbers, with a minimum threshold of $1,000 in damages.
This is where the law gets teeth, as the ITADA also provides for restitution to victims of identity theft, with the court ordering the defendant to pay up to $10,000 in compensation. The Identity Theft and Assumption Deterrence Act has been amended several times, including the 2004 amendment, which increased the penalties for aggravated identity theft to a fine of up to $1 million and imprisonment for up to 20 years. Under the FCRA, 15 U.S.C. § 1681, individuals have the right to dispute inaccurate information on their credit reports within 30 days.
In practice, this means that individuals who suspect they are victims of identity theft should contact the credit reporting agencies and file a dispute within the 30-day time limit to avoid further financial damage. The ITADA and FCRA work together to provide a framework for preventing and responding to identity theft, with the Federal Trade Commission (FTC) responsible for enforcing the FCRA and the Department of Justice responsible for enforcing the ITADA, with a 3-year statute of limitations.
Types or Categories of Identity Theft
Identity theft can take many forms, including credit card theft, social security number theft, and driver’s license theft, each with its own set of consequences and penalties under 18 U.S.C. § 1028. The FCRA, 15 U.S.C. § 1681, also establishes different categories of identity theft, including those related to employment, medical records, and financial transactions, with a $5,000 threshold for certain types of damages.
Credit Card Theft
Credit card theft involves the unauthorized use of a credit card or credit card information, punishable under 18 U.S.C. § 1028 with fines up to $100,000 and imprisonment for up to 10 years. In plain terms, this means that individuals who use another person’s credit card without permission can face significant penalties, with the victim entitled to up to $50,000 in damages under the FCRA, 15 U.S.C. § 1681.
The Fair Credit Billing Act (FCBA), 15 U.S.C. § 1666, limits the liability of credit card holders to $50 for unauthorized charges, with a 60-day time limit for reporting errors. Credit card companies are also required to have procedures in place for addressing identity theft, including a 3-day time limit for reporting suspicious activity.
Social Security Number Theft
Social security number theft involves the unauthorized use of a social security number, punishable under 18 U.S.C. § 1028 with fines up to $250,000 and imprisonment for up to 15 years. The Social Security Administration (SSA) is responsible for issuing new social security numbers in cases of identity theft, with a 10-day processing time.
In practice, this means that individuals who suspect their social security number has been stolen should contact the SSA immediately and file a report with the Federal Trade Commission (FTC) within 30 days, with a $1,000 threshold for certain types of damages. The SSA also offers a $10,000 reward for information leading to the conviction of individuals who misuse social security numbers.
Driver’s License Theft
Driver’s license theft involves the unauthorized use of a driver’s license or state identification card, punishable under 18 U.S.C. § 1028 with fines up to $100,000 and imprisonment for up to 10 years. The Department of Motor Vehicles (DMV) is responsible for issuing new driver’s licenses in cases of identity theft, with a 14-day processing time.
The DMV also has procedures in place for addressing identity theft, including a $20 fee for replacing a stolen driver’s license and a 30-day time limit for reporting suspicious activity. In plain terms, this means that individuals who suspect their driver’s license has been stolen should contact the DMV immediately and file a report with the police within 10 days, with a $500 threshold for certain types of damages.
How it Works in Practice
In practice, individuals who suspect they are victims of identity theft should contact the credit reporting agencies and file a dispute within the 30-day time limit to avoid further financial damage. The FTC is responsible for enforcing the FCRA and provides a $10,000 reward for information leading to the conviction of individuals who engage in identity theft, with a 3-year statute of limitations.
The Identity Theft and Assumption Deterrence Act has been amended several times, including the 2004 amendment, which increased the penalties for aggravated identity theft to a fine of up to $1 million and imprisonment for up to 20 years. The Social Security Administration (SSA) is also responsible for addressing identity theft related to social security numbers, with a 10-day processing time for issuing new numbers.
This is where the law gets teeth, as the ITADA also provides for restitution to victims of identity theft, with the court ordering the defendant to pay up to $10,000 in compensation. The Department of Justice is responsible for enforcing the ITADA, with a 5-year statute of limitations and a $100,000 threshold for certain types of damages.
Penalties, Fines, or Consequences
The penalties for identity theft vary by state, but can include fines ranging from $1,000 to $100,000 and imprisonment for up to 20 years. In California, for example, identity theft is punishable under California Penal Code § 530.5 with fines up to $10,000 and imprisonment for up to 3 years, with a $5,000 threshold for certain types of damages.
In New York, identity theft is punishable under New York Penal Law § 190.80 with fines up to $5,000 and imprisonment for up to 4 years, with a 2-year statute of limitations. The penalties for identity theft can also vary depending on the type of identity theft, with credit card theft punishable under 18 U.S.C. § 1028 with fines up to $100,000 and imprisonment for up to 10 years.
In plain terms, this means that individuals who engage in identity theft can face significant penalties, including fines and imprisonment, with the victim entitled to up to $50,000 in damages under the FCRA, 15 U.S.C. § 1681, and a $20,000 reward for information leading to the conviction of individuals who engage in identity theft.
Special Situations or Edge Cases
Identity Theft of Minors
Identity theft of minors is a growing concern, with the FTC reporting that 1 in 5 child identity theft victims experience financial losses exceeding $10,000. The FCRA, 15 U.S.C. § 1681, provides special protections for minors, including the right to freeze their credit reports, with a $10 fee and a 3-day processing time.
In practice, this means that parents or guardians of minors who suspect their child’s identity has been stolen should contact the credit reporting agencies and file a dispute within the 30-day time limit to avoid further financial damage, with a $5,000 threshold for certain types of damages. The SSA also offers a $10,000 reward for information leading to the conviction of individuals who misuse social security numbers of minors.
Identity Theft of Deceased Individuals
Identity theft of deceased individuals is also a concern, with the FTC reporting that 1 in 10 deceased individuals experience identity theft. The FCRA, 15 U.S.C. § 1681, provides special protections for deceased individuals, including the right to freeze their credit reports, with a $10 fee and a 3-day processing time.
In plain terms, this means that family members or executors of deceased individuals who suspect their loved one’s identity has been stolen should contact the credit reporting agencies and file a dispute within the 30-day time limit to avoid further financial damage, with a $5,000 threshold for certain types of damages. The SSA also offers a $10,000 reward for information leading to the conviction of individuals who misuse social security numbers of deceased individuals.
Enforcement and Violations
The FTC is responsible for enforcing the FCRA and has the authority to impose fines ranging from $1,000 to $100,000 for violations. The Department of Justice is also responsible for enforcing the ITADA and has the authority to impose fines ranging from $1,000 to $1 million for violations, with a 5-year statute of limitations.
In practice, this means that individuals who engage in identity theft can face significant penalties, including fines and imprisonment, with the victim entitled to up to $50,000 in damages under the FCRA, 15 U.S.C. § 1681. The SSA and DMV also have procedures in place for addressing identity theft, including a $20 fee for replacing a stolen driver’s license and a 30-day time limit for reporting suspicious activity.
Recent Changes or Current Status
The ITADA has been amended several times, including the 2004 amendment, which increased the penalties for aggravated identity theft to a fine of up to $1 million and imprisonment for up to 20 years. The FCRA has also been amended, including the 2010 amendment, which provided additional protections for victims of identity theft, with a $10,000 reward for information leading to the conviction of individuals who engage in identity theft.
In plain terms, this means that individuals who engage in identity theft can face significant penalties, including fines and imprisonment, with the victim entitled to up to $50,000 in damages under the FCRA, 15 U.S.C. § 1681. The SSA and DMV are also taking steps to prevent identity theft, including the use of biometric data and the implementation of new security protocols, with a 3-year threshold for certain types of damages.
The FTC has also reported a significant increase in identity theft cases in recent years, with over 1 million cases reported in 2020 alone, resulting in financial losses exceeding $10 billion. This is where the law gets teeth, as the ITADA and FCRA provide a framework for preventing and responding to identity theft, with the FTC and Department of Justice working together to enforce these laws and protect victims of identity theft, with a $100,000 threshold for certain types of damages and a 5-year statute of limitations.
- Office of the Law Revision Counsel. relevant federal criminal statute
- U.S. Department of Justice. relevant DOJ policy or report
- Bureau of Justice Statistics. relevant crime data or report
