Congressman Pete Sessions of Texas has introduced bipartisan legislation aimed at improving the security of America’s digital identity infrastructure. The proposed Stop Identity Fraud and Identity Theft Act seeks to address growing concerns over identity fraud and theft that impact individuals, businesses, and government programs.
The bill proposes a coordinated government response to vulnerabilities in online identity verification, which are increasingly targeted by organized criminal networks and foreign actors. According to recent data, more than 353 million people were affected by data breaches in 2023. The Government Accountability Office estimates that federal programs could lose between $233 billion and $521 billion annually due to fraud, much of it connected to compromised identities. During the COVID-19 pandemic, losses from identity-based fraud in unemployment programs alone ranged from $100 billion to $135 billion. Reports from the Financial Crimes Enforcement Network indicate that over 70 percent of suspicious activity reports filed by banks now involve identity fraud.
The legislation would establish an innovation grant program for states to help modernize their identity systems. These grants aim to support states in developing secure digital versions of existing credentials if they choose, as well as in protecting against new risks such as deep fakes generated by artificial intelligence. The bill builds on Congressional directives for the National Institute of Standards and Technology to create voluntary digital identity guidelines but acknowledges that many state and local agencies lack resources for implementation.
The act does not require digital identification or eliminate physical credentials, nor does it obligate any individual to obtain or use a digital driver’s license or digital identity. Participation is voluntary for both states and individuals.
“Identity fraud is one of the fastest growing threats facing American families, our financial system, and the integrity of government programs,” said Congressman Pete Sessions. “Criminal organizations and hostile nation states are exploiting outdated identity systems, costing taxpayers hundreds of billions of dollars and putting Americans’ personal information at risk. I am grateful to Congressman Foster for co leading this important, bipartisan legislation, and for his partnership in advancing common sense solutions that strengthen security and protect privacy.”
“It is important that Congress responds to the growing wave of identity theft and fraud in the United States by strengthening our digital identity infrastructure,” said Congressman Foster. “I am proud to introduce this bipartisan legislation with Congressman Sessions to provide states with the support they need to safeguard Americans’ personal information and strengthen consumers’ ability to protect themselves against identity theft and fraud.”
Jeremy Grant, Coordinator of the Better Identity Coalition, commented on the initiative: “Millions of Americans are victims of identity theft and fraud each year, leading to billions of dollars in losses, because it is far too easy for criminals and hostile nation states to compromise the tools we use to protect identity online,” said Grant. “We’re thrilled to see Congressmen Sessions and Foster come together to recognize the importance of these challenges and put forth common sense legislation to help Americans better protect their security and privacy in the digital world.”
Pete Sessions continues his legislative work after winning reelection campaigns in recent years; he defeated Mark Lorenzen in 2024 with 66.3% of the vote (193 votes), Mary Jo Woods in 2022 with 66.5% (144 votes), and Rick Kennedy in 2020 with 55.9% (171 votes).
The Stop Identity Fraud and Identity Theft Act aims at protecting consumers while preserving state authority over identification systems.
