Identity theft targeted by Kaine measure

Richmond

Computer security laws to protect personal information and alert individuals if their information is unintentionally made public were proposed Thursday by Gov. Timothy M. Kaine.

Kaine seeks legislation that would require people to be notified if there is a breach of databases that contain sensitive personal information. He also wants to give individuals the ability to freeze their credit to ward off identity theft and fraud.

He said the proposals are intended "to make sure we protect people's credit and prevent identity theft."

Identity theft and credit card fraud are growing problems that can be caused by an inadvertent loss of information or computer hackers illegally taking data, he said.

The Identity Theft Resource Center, a nonprofit based in San Diego, reported that the records of more than 127.7 million Americans were compromised in 446 breaches during 2007.

In the previous year, more than 20 million records were compromised in 312 breaches.

State and local government agencies in Virginia are required to provide notice of database breaches under a new state policy that took effect Nov. 1.

Kaine's breach notification proposal would apply to businesses that experience a breach involving personal data such as an individual's name combined with a

Social Security number, driver's license number, account or credit card number with a password or access code.

Businesses that can show that a breach does not pose a reasonable threat to individuals through the disclosure of their information would be exempted from the notification standard, Kaine said.

The governor said a penalty - still to be determined - would be assessed to businesses that fail to comply.

In addition, under his proposal, for $5, individuals would be able to place a credit freeze on their file with credit agencies to block anyone from opening a new line of credit in their name.

Another $5 fee would be charged to remove a freeze.

Kaine said the freeze would "prevent the fraudulent creation of new credit accounts whereby people's money can be taken... Credit freezes are really the only existing measures to prevent identity theft."

Victims of identity theft would not pay the $5 fee under the proposal.

If both measures become law, Virginia would join 39 other states and the District of Columbia, which have similar standards.

Kaine announced the proposals at an AARP Virginia office in downtown Richmond.

That group's state director, Bill Kallio, said the governor's plan "will go a long way in helping seniors and their families have the protection needed to avert financial disaster and emotional crisis."

Julian Walker, (804) 697-1564, julian.walker@pilotonline.com