Compliance Alert

MSNBC technology correspondent Bob Sullivan, author of the book Your Evil Twin: Behind the Identity Theft Epidemic, has provided a consistent voice advocating for legal action to provide information protection.

In his latest essay, posted to the www.msnbc.com Web site in late April, Sullivan refers to consumer financial information being "left out on flood plain" in clear danger and calls for the federal government to lift the information to higher ground.

Referring to electronic data leaks by ChoicePoint Inc., LexisNexis, DSW Shoe Warehouse and several universities, Sullivan contends, "Consumers are being forced to live in the personal data flood plain, often against their will. And the river keeps rising."

Sullivan comments that the information will remain valuable as long as a culture of instant credit remains a stock in trade among retailers. "Theft of personal data is prevalent for one simple reason: The data is incredibly valuable. It’s time Congress and U.S. financial institutions take an honest look at why that is, an honest look at the only reason anyone wants to steal all that personal data in the first place: the free-flowing, overflowing issuance of instant credit," he writes.

In his essay, Sullivan contends that identity theft has become a multi-billion dollar illegal industry affecting up to 27 million Americans because once a criminal has someone else’s Social Security number and/or credit card number, they can have little trouble instantly purchasing a $3,000 television set within moments of entering an electronics store.

In the short-term, Sullivan advocates a consumer option for a "security freeze," which would put consumers on a list to be notified of any attempt to open up a new line of instant credit.

Longer term, the correspondent believes American retailers, legislators and consumers have to consider the costs and benefits of the current availability of credit and its reliance on the Social Security number as carte blanche to obtain credit.

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Additionally, the way personal financial information flows from one corporation to another without the individual even knowing, is worthy of attention from the financial industry and from federal legislators, Sullivan contends.

Writes Sullivan, "Only meaningful reform of the way our nation distributes instant credit will change this equation. The credit and retail industries fear any interruption in the free-flow of credit, saying it will cut down on consumer impulse buys. So we sacrifice the privacy of millions to protect the ability to spend much of our future earnings in an instant. It’s time to openly debate the wisdom of that trade-off."