Report - Guardian

100 The LSE Identity Project Report: June 2005majority of new accounts opened by identity fraudsters were credit card accounts,followed by loans, telephone services, banking, and internet transactions. 262No government department has argued for identity cards in the US on grounds ofcombating identity theft. 263 In fact, the dominant argument is that a national ID card inthe US would make identity theft more of a problem because of the centralisation ofpersonal information it would entail. 264 This argument was supported by the theft ofpersonal data from three state ID issuing agencies over a two month period. 265 In onecase, the criminals stole blank licenses, along with an equal number of laminated coverswith state seals, a digital license camera, a desktop computer and a license printer. 266In the US, the Social Security Number has become an identity hub and a centralreference point to index and link identity. 267 Obtaining a person’s SSN provides a singleinterface with that person’s dealings with a vast number of private and public bodies.There have been countless cases of identity thefts that were enabled by first obtainingthe SSN. It is arguable that the existence and ease of obtaining the SSN and itsimportance across private and public databases is the reason why the level of identitytheft in the US is extremely high. This situation applies equally in Australia where theintroduction of an extensive Tax File Number has also increased the incidence ofidentity theft beyond the levels experienced in the UK. 268Consumer groups in the US have recently criticised the Senate Banking Committee forfailing to take action to reverse this trend. The Consumers Union argues that identitytheft will continue to rise until the relationship between the SSN and the publication ofpersonal details in the finance sector can be reduced. 269In the United States, Blue Cross and Blue Shield recently decided to discard the use ofSocial Security numbers in order to reduce identity theft. Between April 1 and the endof the year, all of the insurance company's members will be given new ID numbers andnew ID cards containing those numbers. 270As a result, Identity Cards with a new global unique identifier are not considered areasonable solution to the challenges faced in the US. Rather, the measures that arepromoted to combat identity theft include promoting the reporting of the crime toauthorities (which only 25% of victims do), and notifying credit bureaus (only 37%have). The FTC also recommends credit fraud-alerts to notify individuals when262 FTC report, page 34.263 E.g. the FTC document on ‘Remedying the Effects of Identity Theft’ recommends many measures but noneinclude more identity document. Available at http://www.ftc.gov/bcp/conline/pubs/credit/idtsummary.pdf264 American Civil Liberties Union, ‘Real ID’ Tacked Onto Military Funding Measure, Bill Would Enact BroadChanges Without Congressional Review, May 4, 2005. The ACLU states that an ID system is ‘a system ripe foridentity theft.’265 ‘National ID Battle Continues’, Kim Zetter, Wired News, May 12, 2005.266 ‘Authorities warn of consequences of DMV break-in’, Omar Sofradzija, Las Vegas Review-Journal, March 9,2005.267 ‘Proposed California Bill Bans Distribution of Social Security Numbers’, Information Week, December 6, 2004,http://informationweek.com/story/showArticle.jhtml?articleID=54800697.268 Speech by Karen Curtis, Federal Privacy Commissioner, to the 2nd International Policing Conference, Adelaide,3rd November, 2004 http://www.privacy.gov.au/news/speeches/sp5_04p.html.269 Consumers Union statement, September 23, 2003,http://www.consumersunion.org/pub/core_financial_services/000407.html.270 ‘Blue Cross to drop Social Security numbers from ID cards’, The Business Journal, March 8, 2005.