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June 4, 2001 - E-Pass Washington

US FTC Addresses Internet Fraud

On May 23rd, the US Federal Trade Commission’s Eileen Harrington gave testimony to the Congressional Subcommittee on Commerce, Trade, and Consumer Protection on the state of Internet fraud and her agency’s attempts to curb it. The appearance came in the midst of growing public interest in Internet privacy.

There were over 25,000 Internet fraud complaints filed with the FTC in 2000. According to Harrington these complaints are not surprising given the explosive growth of the Internet, but are “unfortunate.” The 25,000 complaints represent a more than 300% increase over those filed in 1998. They also make up roughly 26% of all fraud complaints received by the FTC in 2000.

One of the most prominent offenses committed over the Internet is that of identity theft. Harrington defined it as “use by a thief, unbeknownst to his victim, of the victim's name, social security number or other personal identifying information, to open accounts and rack up huge debts for goods and services.”

While the FTC’s Bureau of Consumer Protection is responsible for tracking down and prosecuting those who commit identity theft, it is more focused upon fraudulent and deceptive Internet scams. These cases of Internet fraud are more easily identified because they maintain permanent addresses in cyberspace and are more beneficial to prosecute as one defendant may be charged with hundreds of counts of fraud. Identity theft is often an isolated crime.

The primary role of the FTC in fighting identity fraud, according to Harrington, is the Consumer Sentinel – “a web-based consumer complaint database and law enforcement investigative tool.” This central database is used by local law enforcement agencies to assist tracking down the individuals responsible for the theft. In addition, it provides a resource for identifying identity theft rings.

Consumers searching for defense against identity fraud should look no further then e-pass. The best way to prevent a criminal from using your personal information is to not let them have it in the first place. The e-pass device offers online and in-person transaction capabilities protected by PIN-based transaction authentication and exact transaction amount authentication. Such protection will be the standard by which online commerce progresses in the future. e-pass assures this protection today.

 

Relevant Sources:

Harrington’s Testimony before the US House

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