To slow an alarming rise in identity theft, the state should make it a felony to possess Social Security numbers and other sensitive personal information without authorization, according to a Hawai'i task force.

Lawmakers will propose stiffer ID-theft laws in the legislative session set to start next Wednesday. The changes would allow police to arrest people stealing mail or possessing other people's confidential information on their computers.

Under existing state law, crimes related to identity theft often result in petty misdemeanor charges only. That needs to change, concluded the state Anti-Phishing Task Force.

"It's giving the police departments a lot more tools with which to make a case," said state Sen. Carol Fukunaga, D-11th (Makiki, Pawa'a).

The proposal to increase penalties is one of at least six bills on identity theft to be considered this year. Gov. Linda Lingle's administration is offering four proposals, including one that allows Hawai'i residents who are victims to limit how their credit reports are released.

Hawai'i already has a law pertaining to identity theft, but the task force said other legislation is needed to help prosecute criminals.

The U.S. Postal Service estimated that Hawai'i mail theft complaints probably rose to 10,000 last year from 7,400 in 2004, according to the Anti-Phishing Task Force. (Phishing is when a thief sends fraudulent e-mail hoping to get back — or fishing for — personal information.)

"In my own district I've had countless constituents call me about their mail being stolen," said state Rep. Colleen Meyer, R-47th (Ha'iku, Kahalu'u, La'ie). She said the task force measure should have bipartisan support. "It just became pretty clear that we have to get more serious about it and make this a felony rather than a misdemeanor."

HELPING POSTAL EFFORT

Marvin Dang, an attorney who represented the Hawaii Financial Services Association on the task force, said the measure would help supplement efforts by the U.S. Postal Service to prosecute mail theft.

"Federal authorities have limited resources," Dang said. "This allows the state and city authorities to separately prosecute someone."

He said the measure also provides for additional jail time if the offender already had a felony conviction.

The task force report said some of the mail theft is by drug users who then sell the letters for cash or drugs. In some cases, crystal methamphetamine users are given drugs to reassemble shredded documents, it said.

The task force's proposed bill on unauthorized possession of confidential personal information makes it a felony to have the information either on cards, documents or on digital forms. Among the information that could land someone in jail are employee identification numbers, mother's maiden name, bank account numbers and passwords.

"You would think, on the face of it, it would help us because all we have to do is prove possession," said Honolulu police Lt. Jeff Richards, himself a victim of identity theft when someone stole convenience checks out of his mailbox while he was on vacation.

While the task force's intentions are laudable, the measure may pose problems to people who find themselves with other people's information through no fault of their own, such as having mail delivered to the wrong address, said Konrad Hayashi, a Honolulu public health physician who was the victim of identity theft.

"The proposed legislation sounds fairly broad," Hayashi said. "I'd like to know more details about it.

"Perhaps it can be more carefully tailored to target those who are clearly going to use the information maliciously."

UNIFORM REPORTING

The Anti-Phishing Task Force is also proposing more uniform reporting of identity-theft crimes, something that could lead to federal funding for fighting the crime, Fukunaga said.

The state also needs to do more in amending its laws requiring personal information in public records that are available to anyone, the task force report said.

"I imagine there's probably going to be a lot more interest in this topic," Fukunaga said. "I suspect there's a lot more interest among legislators to figure out ways to tackle this problem."

Reach Greg Wiles at gwiles@honoluluadvertiser.com.