Conyers-Smith Bill Combats Cybercrime, Identity Theft

November 14, 2007 -- (WASHINGTON, D.C.) – Today, House Judiciary Committee Chairman John Conyers, Jr. (D-MI) and Ranking Member Lamar Smith (R-TX) introduced legislation to protect personal information, promote data security and prevent cybercrime. The Privacy and Cybercrime Enforcement Act of 2007 strengthens penalties and prosecutions against cybercrime violations and encourages increased cyber security.

"I would like to thank the bipartisan coalition of Representatives who have joined me in introducing this important legislation," Chairman Conyers said. "The Privacy and Cybercrime Enforcement Act of 2007 is a good, bipartisan measure to help combat the growing threat of identity theft and other cyber-crimes. This balanced bill protects the privacy rights of consumers, the interests of business and the legitimate needs of law enforcement."

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“Criminals have always been able to steal possessions or money, but with access to personal information online, they can literally steal your identity,” stated Ranking Member Smith. “During the past year, personal records for approximately 73 million people were lost or stolen. By preventing identity theft and promoting cyber security, this bill takes important steps towards ensuring Americans are safe from cybercrime.”

Over 150 million Americans are connected to the Internet and last year alone, spending on the Internet exceeded $102 billion. According to the Federal Bureau of Information (FBI), the annual loss due to cybercrime is approximately $67.2 billion. Specifically, the FBI estimates that the annual cost of identity theft at $49.3 billion.

A recent Government Accountability Office (GAO) study found that 21 of 24 federal agencies have significant weaknesses in information security controls, including access controls—which ensure that only authorized individuals can read, alter or delete data—and configuration management controls—which provide assurance that only authorized software programs are used. Last year, a Veterans Affairs Department data analyst took home a laptop computer containing the personal data—including names, Social Security numbers and dates of birth—for over 26.5 million veterans and their spouses. The laptop was stolen in a burglary, jeopardizing the personal information of millions of veterans.

Thirty-five states have laws requiring companies or state agencies to disclose security breaches. There is currently no federal law requiring notification of security breaches. The Privacy and Cybercrime Enforcement Act would require appropriate notification to law enforcement agencies.

Source: House Judiciary Committee