With strongest penalties in the country, Michiganders will now know about security breaches
Today, Governor Granholm signed into law a bill that will help
prevent what continues to be the fastest growing crime in America –
identity theft. The new law requires businesses in the state of
Michigan to notify consumers when their personal information has been
stolen or illegally accessed.
“Until
now, your personal information could have been stolen without you even
being aware of it,” stated David Pettit, the Public Interest Associate
for PIRGIM. “Once people know about a security breach, they can take
measures to protect themselves like placing fraud alerts on their
credit reports.”
By
informing consumers of a security breach, the likelihood of thieves
opening fraudulent accounts is dramatically reduced. On average,
consumers spend 60 hours and $1200 of their own money addressing
fraudulent accounts. Now, if a company fails to contact consumers it
can face fines up to $750,000 – the strongest penalty in the country.
The
bill’s sponsor, Senator Shirley Johnson (R-Troy), believes that
“identity theft is a serious problem that must be countered. When an
individual’s personal information is compromised, it is vital they are
alerted in a timely manner so they may take the necessary measures to
protect themselves.”
Beyond
notification, additional protections against identity theft are
currently available in other states such as the ability to “freeze”
your credit report. “Notification is the key first step in preventing
identity theft,” said Pettit. “But freezing your credit report is like
putting a padlock on your identity.”
The
notification bill, SB 309, passed unanimously in both the House and the
Senate with widespread support from both the business and consumer
protection communities.
