Identity Theft and Assumption Deterrence Act of 1998

Summary: Identity Theft and Assumption Deterrence Act of 1998 - Amends the Federal criminal code to prohibit identity fraud.  Imposes penalties upon anyone who, in interstate or foreign commerce or through the  use of a communication facility, knowingly, with intent to defraud, and in order to receive payment or any thing the aggregate value of which is at least $1,000:  (1) receives, acquires, obtains, purchases, sells, transfers, traffics in, steals, possesses, or uses any personal identifier, identification device, personal information or data, or other document or means of identification of any other entity or person; (2) assumes, adopts, takes, acquires, or uses the identity of any other entity or person; or (3) attempts, solicits another person, or conspires with another person to commit such offense. 
Authorizes the United States Secret Service to investigate offenses under this Act, subject to terms of an agreement to be entered with the Secretary of the Treasury. 
Directs the United States Sentencing Commission to amend the Federal sentencing guidelines to provide for sentencing enhancements for a defendant who is convicted of an offense under this Act in connection with another specified offense, based on:  (1) the number of victims involved; (2) whether the offense involves the stealing or destroying of a quantity of undelivered U.S. mail; and (3) the potential loss that could have resulted from such offense. 
Includes within the definition of "contraband" (subject to forfeiture) specified equipment pertaining to identity fraud. 
Provides for mandatory restitution for victims of identity fraud which may include payment for any costs, including attorney's fees, incurred by the victim:  (1) in clearing his or her credit history or credit rating; or (2) in connection with any civil or administrative proceeding to satisfy any debt, lien, or other obligation of the victim arising as a result of the defendant's actions. 
Directs:  (1) the Secret Service and the Federal Bureau of Investigation to collect and maintain certain information and statistical data relating to identity fraud; (2) the Secretary of the Treasury, the Chairman of the Federal Trade Commission, the Attorney General, and the Postmaster General to study and report to the Congress on the nature, extent, and causes of identity fraud and the threat it poses to financial institutions and payment systems and to consumer safety and privacy; and (3) the Secretary of the Treasury to promulgate such regulations as necessary to include identity fraud as a separate characterization of suspicious activity for purposes of reports by financial institutions of suspicious transactions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Identity Theft and Assumption 
Deterrence Act of 1998''.

SEC. 2. CONSTITUTIONAL AUTHORITY TO ENACT THIS LEGISLATION.

    The constitutional authority upon which this Act rests is the power 
of Congress to regulate commerce with foreign nations and among the 
several States, set forth in article I, section 8 of the United States 
Constitution.

SEC. 3. IDENTITY FRAUD.

    (a) Establishment of Offense.--
            (1) In general.--Chapter 47 of title 18, United States 
        Code, is amended by adding at the end the following:
``Sec. 1036. Identity fraud
    ``(a) Definitions.--In this section--
            ``(1) the term `communication facility' has the meaning 
        given that term in section 403(b) of the Controlled Substances 
        Act (21 U.S.C. 843(b));
            ``(2) the term `means of identification' means any name or 
        number that may be used, alone or in conjunction with any other 
        information, to assume the identity of an individual, including 
        any--
                    ``(A) personal identification card (as that term is 
                defined in section 1028); or
                    ``(B) access device, counterfeit access device, or 
                unauthorized access device (as those terms are defined 
                in section 1029);
            ``(3) the term `personal identifier' means--
                    ``(A) a name, social security number, date of 
                birth, official State or government issued driver's 
                license or identification number, alien registration 
                number, government passport number, employer or 
                taxpayer identification number, or any access device 
                (as that term is defined in section 1029);
                    ``(B) any unique biometric data, such as a 
                fingerprint, voice print, retina or iris image, or 
                other unique physical representation;
                    ``(C) any unique electronic identification number, 
                address, or routing code; or
                    ``(D) any other means of identification not 
                lawfully issued to the user;
            ``(4) the term `identification device' means any physical, 
        mechanical, or electronic representation of a personal 
        identifier or any personal information or data; and
            ``(5) the term `personal information or data' means any 
        information that, when used in conjunction with a personal 
        identifier or identification device, would facilitate a 
        misrepresentation or assumption of the identity of another.
    ``(b) Prohibition.--Whoever in interstate or foreign commerce, or 
through the use of a communication facility, knowingly, with intent to 
defraud, and in order to receive payment or any other thing of value 
the aggregate value of which is equal to or greater than $1,000--
            ``(1) receives, acquires, obtains, purchases, sells, 
        transfers, traffics in, or steals, or attempts to receive, 
        acquire, obtain, purchase, sell, transfer, traffic in, or 
        steal, or otherwise causes or solicits another to do the same, 
        any personal identifier, identification device, personal 
        information or data, or other document or means of 
        identification of any entity or person;
            ``(2) possesses or uses, or attempts to possess or use, or 
        otherwise causes or solicits another to do the same, any 
        personal identifier, identification device, personal 
        information or data, or other document or means of 
        identification of any entity or person; or
            ``(3) assumes, adopts, takes, acquires, or uses, or 
        attempts to assume, adopt, take, acquire, or use, or otherwise 
        causes or solicits another to do the same, the identity of any 
        entity or person;
shall be fined under this title, imprisoned not more than 15 years, or 
both.
    ``(c) Conspiracy.--Whoever is a party to a conspiracy of 2 or more 
persons to commit an offense described in subsection (b), if any of the 
parties engages in any conduct in furtherance of the offense, shall be 
fined in an amount not to exceed the amount of the fine to which that 
person would be subject for that offense under subsection (b), 
imprisoned not more than 7.5 years, or both.''.
            (2) Investigative authority.--In addition to any other 
        agency having such authority, the United States Secret Service 
        may investigate any offense under section 1036 of title 18, 
        United States Code (as added by this subsection), except that 
        the exercise of investigative authority under this paragraph 
        shall be subject to the terms of an agreement, which shall be 
        entered into by the Secretary of the Treasury and the Attorney 
        General.
            (3) Sentencing enhancement.--Pursuant to its authority 
        under section 994(p) of title 28, United States Code, the 
        United States Sentencing Commission shall amend the Federal 
        sentencing guidelines to provide for sentencing enhancements 
        under chapter 2 of the Federal sentencing guidelines for a 
        defendant who is convicted of an offense under section 1036 of 
        title 18, United States Code, in connection with an offense 
        under section 513, 514, 1028, 1029, 1341, 1342, 1343, 1344, or 
        1708 of title 18, United States Code, as follows:
                    (A) A sentencing enhancement of--
                            (i) 1 level, if the offense involves not 
                        more than 1 victim;
                            (ii) 2 levels, if the offense involves not 
                        less than 2 and not more than 4 victims; or
                            (iii) 3 levels, if the offense involves 5 
                        or more victims.
                    (B) An appropriate sentencing enhancement, if the 
                offense involves stealing or destroying a quantity of 
                undelivered United States mail, in violation of section 
                1702, 1703, 1708, 1709, 2114, or 2115 of title 18, 
                United States Code.
                    (C) An appropriate sentencing enhancement based on 
                the potential loss (as opposed to the actual loss) that 
                could have resulted from an identity theft offense 
                (i.e. the line of credit of the access device, etc.).
            (4) Clerical amendment.--The analysis for chapter 47 of 
        title 18, United States Code, is amended by adding at the end 
        the following:

``1036. Identity fraud.''.
    (b) Forfeiture of Contraband.--Section 80302(a) of title 49, United 
States Code, is amended--
            (1) in paragraph (5), by striking ``or'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(7) an identification document, false identification 
        document, or a document-making implement (as those terms are 
        defined in sections 1028 and 1029 of title 18) involved in a 
        violation of section 1028 or 1029 of title 18;
            ``(8) a counterfeit access device, device-making equipment, 
        or scanning receiver (as those terms are defined in sections 
        1028 and 1029 of title 18); or
            ``(9) a means of identification (as that term is defined in 
        section 1036) involved in a violation of section 1036.''.
    (c) Restitution.--Section 3663A of title 18, United States Code, is 
amended--
            (1) in subsection (c)(1)(A)--
                    (A) in clause (ii), by striking ``or'' at the end;
                    (B) in clause (iii), by striking ``and'' at the end 
                and inserting ``or''; and
                    (C) by adding at the end the following:
                    ``(iv) an offense described in section 1036 
                (relating to identity fraud); and''; and
            (2) by adding at the end the following:
    ``(e) Identity Fraud.--Making restitution to a victim under this 
section for an offense described in section 1036 (relating to identity 
fraud) may include payment for any costs, including attorney fees, 
incurred by the victim--
            ``(1) in clearing the credit history or credit rating of 
        the victim; or
            ``(2) in connection with any civil or administrative 
        proceeding to satisfy any debt, lien, or other obligation of 
        the victim arising as a result of the actions of the 
        defendant.''.
    (d) Identity Fraud Information and Study; Inclusion in Suspicious 
Activity Reports.--
            (1) Definitions.--In this subsection--
                    (A) the term ``financial institution'' has the same 
                meaning as in section 20 of title 18, United States 
                Code; and
                    (B) the term ``identity fraud'' means an offense 
                described in section 1036 of title 18, United States 
                Code (as added by subsection (a) of this section).
            (2) Identity fraud information.--Beginning not later than 
        60 days after the date of enactment of this Act, the United 
        States Secret Service of the Department of the Treasury and the 
        Federal Bureau of Investigation of the Department of Justice, 
        in consultation with financial institutions and other 
        interested private entities, shall collect and maintain 
        information and statistical data relating to--
                    (A) the number of identity fraud offenses 
                investigated;
                    (B) the number of prosecutions and convictions for 
                identity fraud; and
                    (C) any information provided by State and local law 
                enforcement agencies relating to the investigation of 
                identity fraud.
            (3) Identity fraud study.--Not later than 18 months after 
        the date of enactment of this Act, the Secretary of the 
        Treasury, the Chairman of the Federal Trade Commission, the 
        Attorney General, and the Postmaster General shall--
                    (A) conduct a comprehensive study of--
                            (i) the nature, extent, and causes of 
                        identity fraud; and
                            (ii) the threat posed by identity fraud 
                        to--
                                    (I) financial institutions and 
                                payment systems; and
                                    (II) consumer safety and privacy; 
                                and
                    (B) based on the results of that study, submit to 
                Congress a report including an evaluation of the 
                effectiveness of the provisions of this Act and the 
                amendments made by this Act and, if necessary, specific 
                recommendations for legislation to address the problem 
                of identity fraud.
            (4) Suspicious activity reports.--Not later than 90 days 
        after the date of enactment of this Act, the Secretary of the 
        Treasury shall promulgate such regulations as may be necessary 
        to include identity fraud as a separate characterization of 
        suspicious activity for purposes of reports by financial 
        institutions of suspicious transactions under section 5318(g) 
        of title 31, United States Code.