New identity theft law to take effect

By The Standard Staff - 02/26/2006

MISSOULA (AP) — A new state law aimed at protecting privacy and curbing identity theft takes effect next month.

The law, based on a similar statute in California, requires almost all businesses in the state to take certain precautions when disposing of customer records, to alert customers if their computer security systems are breached and to print no more than the last five digits of a credit card account number or expiration date on customer receipts.

‘‘We’re instituting a bill that affects mom-and-pops as well as everyone else,’’ Montana Chamber of Commerce President Webb Brown said.

The state Chamber and other agencies are welcoming the new law because of the growing identity theft problem faced by businesses and individuals. Other states across the country have already enacted similar legislation, Brown said.

One section of the law, which takes effect March 1, requires businesses to shred, erase or use other means to render customer records unreadable when disposing of them. Businesses can no longer bag up the paperwork and throw it out.

‘‘That’s exactly what the law says you can’t do,’’ said Cort Jensen, chief attorney for the state’s Consumer Protection Office.

The law also says that, if a business stores personal information on a computer system, it must alert customers if that information is viewed by unauthorized people.

‘‘Basically, if someone hacks your system, you have a duty to notify the person whose information was breached,’’ Jensen said.

Finally, businesses that accept credit cards may no longer print more than the last five digits of the credit card number or the expiration date on the receipt given to the cardholder, the new law states. It applies only to electronically printed receipts, not handwritten or imprinted ones.

Businesses have until Jan. 1, 2008, to find a new receipt-printing device that complies with the law if their device was in use before Jan. 1, 2005. If their device was in use on or after Jan. 1, 2005, they are expected to be in compliance already.

This part of the law has caused some concern for business owners, since many will have to buy new credit card terminals or cash registers, Jensen said.

John Roemer of Roemer’s Tire Factory and Auto in Missoula said he had to buy a new credit terminal — a simple way to comply with requirements.