U.S. Rep. Pete Sessions has introduced bipartisan legislation in the House that would combat identity fraud and theft.
The legislation, the Stop Identity Fraud and Theft Act, would establish a government-wide approach to addressing vulnerabilities in online identity verification. Session said the holes in the system are increasingly exploited by organized criminal networks and hostile nation states.
“Identity fraud is one of the fastest growing threats facing American families, our financial system, and the integrity of government programs,” Sessions said. “Criminal organizations and hostile nation states are exploiting outdated identity systems, costing taxpayers hundreds of billions of dollars and putting Americans’ personal information at risk.”
Identity theft and fraud cost Americans and taxpayers. More than 353 million people were impacted by data breaches in 2023, and according to the Government Accountability Office, federal programs could lose between $233 billion and $521 billion annually to fraud, with much of that tied directly to compromised identities.
Sessions said his legislation would establish an identity fraud prevention innovation grant program for states, and that the grants would help states modernize identity systems, develop secure digital versions of existing credentials where they choose to do so, and protect against emerging risks like Artificial Intelligence-driven deep fakes.
Jeremy Grant, Coordinator of the Better Identity Coalition, said his organization supports the legislation.
“Millions of Americans are victims of identity theft and fraud each year, leading to billions of dollars in losses, because it is far too easy for criminals and hostile nation states to compromise the tools we use to protect identity online,” Grant. “We’re thrilled to see Congressmen Sessions… recognize the importance of these challenges and put forth common sense legislation to help Americans better protect their security and privacy in the digital world.”