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The FTC reviewed trends from 214,905 cases reported in 2003, and California accounted for the highest number of incidents (39,452). In 20% of all cases, the source of the information breach involved disclosure of personal data over the internet or other electronic sources. In 55% of all cases, the identity theft resulted in credit card, bank, or loan fraud. Federal and state laws address this growing problem.
The FTC provides some protection by aggressively enforcing existing federal laws. Under the unfair and deceptive trade practices law, a website operator must adhere to the company's own privacy policy or face prosecution for failing to exercise a reasonable standard of care...
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