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New Jersey strengthens ID theft protections

Before last week’s election of a new governor in New Jersey, acting Gov. Richard Codey signed into law a package of identity theft safeguards for consumers.

“At the end of the day, New Jersey residents should feel assured that they are working for their families – not shameless impersonators who have targeted their nest egg,” Codey said in a written statement. “A good name is always worth protecting.”

The New Jersey law permits consumers to place security “freezes” on their credit reports to help prevent the unwanted opening of an account or the obtaining of credit in a person’s name. Consumers will be able to freeze their credit reports for free and lift it temporarily for $5 when applying for credit, The Philadelphia Inquirer reported.

The new law also mandates businesses to destroy a customer’s personal information that is no longer needed as well as notify people whose information could be affected by breaches when they occur.

In addition, it limits the use of Social Security numbers by prohibiting their display on most mailed materials and on membership cards.

Rules requiring consumer notification of data security breaches are on the books in at least 15 states. Among the states with new identity theft rules approved this year are Alabama, Connecticut, New York and North Carolina.

The New Jersey law takes effect Jan. 1, 2006.

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