The sharp rise in identity theft in recent years has prompted TexPIRG to put the scam at the top of the list for legislative action on consumer rip-offs. From banning the sale of consumers’ social security numbers to giving consumers the right to know when hackers have accessed their private financial data, TexPIRG is pushing measures to prevent identity theft through greater privacy safeguards and give victims more rights to clear their names.

Recent reports that a fraud ring gained access to the personal and fi- nancial information of an estimated 140,000 consumers from computer databases maintained by Choice- Point, Inc., have underscored the need for tougher safeguards against identity theft.

Your personal information is a valuable commodity. Social security numbers, medical records and information on your buying patterns are often bought, sold or traded among banks, credit card companies, supermarkets and insurance companies. Corporations do not adequately safeguard consumers’ private financial information, making it relatively easy for thieves to steal this data and use it to take out new credit or to rack up charges on existing accounts.

Identity theft is the fastest-growing form of financial fraud in the U.S. and ruins the credit of millions of Americans every year. According to a report by the Federal Trade Commission in 2003, nearly 10 million Americans are victimized by identity theft every year, costing the average consumer thousands of dollars, serious damage to their credit record and hundreds of hours to clear their name.

Working with a bi-partisan group of legislators including Rep. Helen Giddings (D-Dallas) and Rep. Brian McCall (R-Plano), TexPIRG helped draft and introduce measures to stop identity theft before it happens by protecting Texans’ financial privacy. Legislation has been introduced to limit the businesses allowed to ask for your social security number, to allow all Texans to “freeze” access to their credit reports, to require businesses to notify consumers when a thief has accessed sensitive data, and to give victims of identity theft more tools to clear their names.

TexPIRG is working with law enforcement officials, identity theft victims and privacy-rights groups to push for passage of the bills and to help educate the public on how to prevent the crime.