Congress passes pre-texting ban

WASHINGTON-Congress before adjourning for the year passed legislation criminalizing the use of fraudulent means-such as impersonating wireless and wireline telecom subscribers-to obtain their phone records, a practice made infamous in the Hewlett-Packard Co. “pre-texting” scandal.
The Senate agreed to the version of the bill crafted by the House Judiciary Committee and approved by the House, 409-0, in late April. In addition to outlawing pre-texting itself, the measure prohibits the unauthorized sale or transfer of confidential phone record information, or the receipt of such information with the knowledge that it was fraudulently obtained.
The pre-texting measure passed by Congress late Friday and sent to the White House imposes a fine and/or imprisonment of up to 10 years. It also doubles fines and imposes an additional five-year prison term for violations occurring in a 12-month period involving more than $100,000 or more than 50 customers of a covered entity. Moreover, the bill imposes an additional five-year prison term for violations involving the use of confidential phone records information to commit crimes of violence, crimes of domestic violence, and crimes against law enforcement officials and the administration of justice.
“The wireless industry jealously guards their customer’s privacy,” said Steve Largent, president of cell phone industry association CTIA. “Pre-texting is fraud-pure and simple-and I applaud Congress for moving to put a strong federal law on the books which expressly makes this form of identity theft illegal. While wireless carriers will continue to take aggressive steps to protect themselves and their customers from this illegal activity, passage of bill this will serve as a significant and meaningful deterrent.”
The mobile phone industry raised concerns with a separate pre-texting bill penned by the House Commerce Committee. The bill, which died in the 109th Congress, would have forced mobile phone carriers to take additional steps to protect the privacy of detailed customer phone records. CTIA said the House Commerce Committee bill would unnecessarily impede cellular operators’ ability to enter into business relationships with third-parties and potentially result in increased charges for consumers as a result of a new federal mandate. It is unclear whether the new, Democratic-controlled Congress next year will pursue the failed legislation.