RMV changes make it easier for drivers to safeguard Social Security Numbers
MASSPIRG praised government
officials for their leadership in protecting consumers against Identity Theft.
Specifically, Consumer Affairs Chief Beth Lindstrom, Public Safety Commissioner
Edward Flynn, and Kim Hinden, the Registrar of Motor Vehicles are leaders in
the fight against Identity Theft. The changes announced today, will make it
easier for consumers to safeguard their social security numbers and will forward
the cause of bringing greater awareness, information and prevention to a growing
problem that government, business and the public must be vigilant in addressing.
Beginning in October, consumers
who choose to renew their licenses on-line will no longer have the option of
using their social security numbers as their license number. Those currently
using their social security number will default to an "S" number upon
renewal. A license will only issue with a social security number if an applicant
goes out of their way to specify that choice at a full service location.
"Identity theft is
a growing crisis in the United States and here in Massachusetts. Identity theft
occurs when someone invades your life, taking pieces of your personal identifying
information as his or her own, and ruins your financial reputation," said
Deirdre Cummings, MASSPIRG's Consumer Program Director.
"We know that 46% of
our drivers are still using their social security numbers as their license number.
That's an avenue for fraud that consumers have the power to close down,"
said Beth Lindstrom, Director of the Office of Consumer Affairs.
"Based on a recent
PIRG survey of identity theft victims we know that identity theft victims spend
two years removing an average of $18,000 in fraudulent charges from their credit
reports, at a cost to them of $800," said Cummings.
The survey also found that
45% of the reported cases of identity theft involved the victims' driver's licenses.
With a Social Security number,
and the name to match it, identity thieves can open new credit accounts that
rack up thousands of dollars of debt and destroy a consumer's credit history.
Often, consumers do not know that their identity has been stolen, because identity
thieves arrange all new credit card bills to be sent to false addresses. When
a victim finally discovers the violation, often years after the fact while applying
for a loan or even being falsely arrested, they face endless red tape and spend
a tremendous amount of time and money clearing their good name.
Identity theft is the fastest
growing white-collar crime in America. According to the U.S. Federal Trade Commission
(FTC), in 2002, for the third consecutive year, identity theft was the nation's
leading consumer complaint. Moreover, the FTC recently reported that 9.9 million
Americans are victims of identity theft annually, at a cost of $53 billion to
consumers and businesses.
"The bulk of identity
theft is a result of sloppy business practices and their failure to safeguard
our personal information," said Cummings. To stem the identity theft tide,
MASSPIRG has been working toward measures that:
1) Require businesses and
credit bureaus to better safeguard personal consumer information and minimize
the dissemination of this information
2) Provide consumers with the basic tools to prevent identity theft and restore
their good credit
3) Impose strict penalties on identity thieves
