Encryption can help prevent identity theft

Assemblymember Marie Waldon

Assembly District 75 (R)

As we all know, modern computer technology has created vast new opportunities for tech-savvy criminals. By illegally accessing computer databases and gaining access to private data, identity thieves can cast a pall upon every online transaction we make. Sometimes, the resulting financial nightmares can never be unraveled, with victimized businesses and their customers losing billions in the process.

One fairly simple way to help prevent identity theft involves the encryption of customer data. Encryption scrambles data through the use of mathematical formulas, converting consumer information such as social security numbers to unreadable gibberish for persons who are not authorized to access the information.

Recent news reports involving the health insurer Anthem, Target Department Stores, Home Depot and others have underscored the problem for many consumers. Even the IRS reported that it lost over $5 billion to identity thieves filing false returns.

Consumers not only stand to lose thousands of dollars, but businesses are victims as well. Damage claims filed by defrauded customers can result in settlements that cost companies millions.

To help alleviate this problem, I have introduced Assembly Bill 322 (AB 322). The bill will require the encryption of consumers’ social security numbers by any public or private entity that stores this information online or within a company database. By taking this simple, cost-effective step, consumers and businesses will be protected from the major objective of all online thieves – access to social security numbers and an open door to identity theft.