SUBJECT:

PURPOSE:

Identity theft is one of the most serious problems facing the financial industry in the 21st century. By engaging in a multitude of fraudulent activities – including the theft of a banking customer’s account information at ATMs, attempts to cash counterfeit checks, ‘phishing’ (the use of fraudulent e-mails and websites in an attempt to fool recipients into revealing their financial information), and accessing a person’s credit by stealing his or her credit card number – identity thieves scam consumers out of millions of dollars each year, and in the process erode consumers’ faith in the security of their private financial information.

In 2002, the Legislature enacted legislation (A.4939-E; Pheffer) that criminalized the theft of identity and the unlawful possession of personal identification information and enhanced consumers’ ability to recover damages suffered due to identity theft (Chapter 619 of the Laws of 2002). This public hearing will examine the effectiveness of this law, address several identity theft issues that have arisen since its enactment and explore Legislative solutions to these concerns. This hearing also will address Assembly bill A.1360 (Nolan), which requires non-bank ATMs to register with the New York State Banking Department in order to prevent ATM fraud, and Assembly bill A.1525 (Nolan), which requires banks to immediately disclose a breach of security so that consumers can respond expeditiously to the theft or possible theft of their private financial information.

Persons wishing to present pertinent testimony to the Committee at the above hearing should complete and return the enclosed reply form as soon as possible. It is important that the reply form be fully completed and returned so that persons may be notified in the event of emergency postponement or cancellation.

Oral testimony will be limited to 10 minute durations. In preparing the order of witnesses, the Committee will attempt to accommodate individual requests to speak at particular times in view of special circumstances. These requests should be made on the attached reply form or communicated to Committee staff as early as possible. In the absence of a request, witnesses will be scheduled in the order in which reply forms are postmarked.

Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committee would appreciate advance receipt of prepared statements.

In order to further publicize these hearings, please inform interested parties and organizations of the Committee’s interest in hearing testimony from all sources.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Assembly facilities and activities.

PUBLIC HEARING REPLY FORM

Persons wishing to present testimony at the public hearing on Identity Theft are requested to complete this reply form as soon as possible and mail it to:

Renee Skorupski
Committee Assistant
Assembly Committee on Banks
Room 520 - Capitol
Albany, New York 12248
Email: skorupr@assembly.state.ny.us
Phone: (518) 455-4928
Fax: (518) 455-5182

I will address my remarks to the following subjects:

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