Time to criminalise ID theft?

At present, some 500,000 driving licenses are lost or stolen every year, creating a tidal wave of authentic documentation which can be used to support ID theft. These false identities in turn feed an ecosystem of criminal activity: drugs, prostitution, guns, people trafficking, as well as more mainsteam fraud and racketeering. A key, but less publicised goal of the the government's ID card agenda is to cut off this criminal activity at source. At present the government employs around 5000 staff in benefit fraud prevention within the DWP alone. However, in other countries questions have been raised, as to how effective ID cards can be without a legal regime to encourage prevention and prosecution. Without it, as at present, much ID theft goes unreported, or misreported. IT analyst Gartner's (guess)timate is that fewer than 1 in 700 Identity thieves are ever arrested; let alone prosecuted. What's the incentive? In response to this threat, in July 2004, George W. Bush signed into law the Identity Theft Penalty Enhancement Act, which adds two years to prison sentences for criminals convicted of using stolen credit card numbers and other personal data to commit crimes (five years for those who exploit identity theft in the commission of "terrorist offenses"). There is a clear need to create a range in incentives and penalties which would encourage government and commerce alike to address the issue more aggressively. This law adds real muscle to efforts to deter identity theft. The act: Assesses specific new penalties against identity theft used in the commission of crimes. Should encourage law enforcement officials to prosecute identity thieves. Should increase criminals' chances of getting caught. Should provide a reputational incentive to commercial operators to play a more active role in ID thef prevention. Gartner makes several recommendations: Financial service providers and other businesses that extend credit (such as wireless service providers and retailers) should: Check for identity theft fraud before issuing loans or other credit. Invest in solutions to prevent identity theft fraud across varying accounts, such as checking, credit, consumer loans and auto financing. Work with law enforcement by providing authorities with as near real-time fraud data as possible, which can arm police with information to prevent these crimes. It remains to be seen how far and how fast these lessons are taken on board in the UK, but the scale of the threat and the need for a pervasive, society-wide response should not be ignored.