Re: Identity Theft (was: CRIME Computers vulnerable at Oregon department)

From: Greg Jorgensen (gregj@private)
Date: Fri Sep 27 2002 - 01:40:13 PDT

  • Next message: Crispin Cowan: "Re: Identity Theft (was: CRIME Computers vulnerable at Oregon department)"

    Crispin Cowan wrote:
    
    > The State may not have jurisdiction over SSC's, but it can have 
    > jurisdiction over what kind of authentication various state-regulated 
    > and state-operated orgs use. For instance, it would be easy for the 
    > State to outlaw any state agency using SSC's for authentication.
    
    Hmmm... I'm not so sure. For purposes of taxation the various state tax 
    agencies are so hooked into the IRS that they probably can't extricate 
    themselves. But states could legislate on their own use of SSCs and 
    leave tax collection as an exception.
    
    As I mentioned before the Federal Privacy Act appears to establish some 
    Federal jurisdiction over identity number systems and privacy of 
    personal records. State laws would have to fit into that framework, and 
    with other Federal laws that address privacy and the use of 
    identification systems. A State law that contradicts a Federal law runs 
    into serious problems in the courts; the supremacy of Federal law was 
    decided way back, even before the Civil War; look into the Nullification 
    Crisis of 1832 and South Carolina's battle with Congress if you are 
    interested.
    
    Do we really want privacy laws written at the state level, though? To 
    combat identity theft and general abuse and neglect of personal privacy 
    all states would have to pass very similar laws and cooperate to enforce 
    those laws. I'm all for doing things at the state level when it makes 
    sense, but if, say, Nevada didn't pass strong privacy laws that state 
    would become a haven for data harvesters, spammers, etc. Before you 
    could sue a Nevada-based entity in an Oregon court you'd have to deal 
    with all kinds of jurisdiction issues, and of course the damage to you 
    is already done.
    
    For comparison, state-by-state anti-spamming laws work to some degree, 
    although enforcement seems spotty and the laws dump the problem into the 
    civil courts. But spammers can and do take advantage of the patchwork of 
    state laws and will continue to do so until a Federal-level law limits 
    their activities. I don't know if that will ever happen.
    
    The Federal government regulates interstate commerce, and the FTC and 
    Commerce depts. are the most likely enforcement agencies for future 
    privacy laws. I don't think our personal privacy is what the Office Of 
    Homeland Security will focus on; in fact that agency will probably have 
    broad authority to ignore privacy laws.
    
    I think Federal legislation with some teeth might make more sense. 
    Federal legislation could limit the Federal government's abuses of 
    privacy, and at least set a minimum level for parallel state laws. 
    State-level legislation would serve mainly to limit that state's own use 
    and abuse, and to provide for state-level enforcement (because dragging 
    a state government into Federal court is not a practical solution for 
    most plaintiffs).
    
    All this is just talk unless the government really cares about enforcing 
    the laws. We have some laws already, such as the 30-year-old Privacy 
    Act, the two versions of the Fair Credit Reporting Act, limits on the 
    IRS, and Federal-level rules concerning privacy of medical records (with 
    Medicare eligibility used as the carrot & stick). But the cost and 
    hassle of getting prosecutors interested in a case, and going through a 
    lengthy and technical trial against a rich and powerful plaintiff (like 
    a state government agency), effectively takes most of the teeth out of 
    the laws. The FTC may come around and slap a $1,000 fine on an abuser, 
    but they probably aren't going to shut anyone down or put anyone in 
    jail. And the FTC can't even threaten states with dire consequences, 
    like withholding Federal Medicare funds, because they don't have any 
    authority to do so.
    
    
    -- 
    Greg Jorgensen
    PDXperts LLC, Portland, Oregon, USA
    



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