US passes new law to combat identity theft

Washington, DC -- US president George Bush signed a new law in early December designed to fight the substantial rise in identity theft in that country over the past few years. The new law, HR 2622, The fair and accurate credit transactions act, is "the most significant consumer protection and financial literacy legislation passed by Congress in decades," says Michael Oxley, the chairman of the House of Representatives financial services committee, in a statement. President Bush called it a "good, solid piece of legislation."

The law allows consumers to obtain a free credit report each year from US credit reporting agencies for evidence of unauthorised activity, such as identity theft. Too, store merchants must leave all but the last five digits of credit card numbers off transactions slips so that thieves cannot obtain personal details in this manner.

The new law also allows for the creation of a national fraud alert