Identity Theft Penalty Enhancement Act

In July 2004, President Bush signed law passed by Congress in response to the growing problem of identity theft as more and more Americans use the Internet to shop and manage their personal finances. The Identity Theft Penalty Enhancement Act amends the federal criminal code to establish penalties for forced identity theft in addition to the existing punishments for related felonies. The act adds two years to prison sentences for “knowingly transferring, possessing, or using, without lawful authority, a means of identification of another person” during and in relation to felony violations. It also adds five years to the sentences of violators who use false identification in the commission of “terrorist acts.”