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Vermont bills target identity theft

With identify theft cases on the rise in Vermont and across the nation, state lawmakers are taking a closer look at new measures to protect residents.

Vermont is one of only a few states that does not have an identity theft law on the books. But that could change this year if the Senate acts on a bill that passed the House last year.

That bill, H327, sponsored by Rep. Maureen Dakin, D-Colchester, would create criminal provisions for identity theft and also establish tools to protect victims so the problems associated with the crime don’t escalate, the Rutland Herald reported.

The bill defines identity theft as gaining “the unauthorized use of another person’s personal identifying information to obtain credit, goods, services, money or property with the intent to commit fraud or pose as that person.”

It would also allow consumers to place a “security freeze” on their credit information to allow them to guard against identity theft.

Anyone found in violation could face up to three years in prison, a $3,000 fine, or both.

A separate bill, S174, sponsored by Sen. John Campbell, D-Quechee, would require all Vermont businesses with customers’ or former employees’ personal information to dispose of those records in a proper manner.

Such personal information would include medical records, credit card account information, loan applications, tax returns, Social Security numbers, driver’s license numbers, date of birth and disability information.

The bill would require businesses to shred, erase or modify personal information in such a way to make it unreadable before disposing it.

While federal law requires the proper destruction of medical and financial records held by hospitals and banks, for example, S174 includes all businesses that have personal information.

Campbell told the newspaper penalties for not destroying records in a proper manner could result in the state seeking injunctive relief against the individual or business or filing a civil action. Victims could also sue for damages.

Both bills are before the Senate Judiciary Committee.

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