One of the best ways to protect identity information and prevent the illegal acquisition of personal data is to protect the transfer of this information over the Internet with digital certificates and SSL security. It is also crucial to data integrity that security measures are taken to protect stored confidential information as well.

Numerous enterprises that aggregate confidential consumer data have already taken acceptable security measures to reduce the risk of identity theft and fraud, but in order to be truly protected legislation is needed which mandates that all entities dealing with confidential consumer information take action to reduce these risks. An example action suggested by state legislation is to protect confidential information transactions on the Internet with digital certificates and SSL technology. The question is whether legislation that protects personal information should come from the federal or state governments?

Several U.S. states have enacted data breach legislation which requires companies and government agencies to notify people when their personal and confidential information has been compromised--but these state issued laws are not consistent in their guidelines for the management and storage of confidential information. As many as thirty-five states have drafted some form of data breach legislation, but many states have not yet legally protected digitally stored personal information.

The U.S. House Energy and Commerce Committee's Subcommittee on Commerce, Trade and Consumer Protection has been considering data security legislation, however nothing has been enacted at the federal level and personal data theft continues to plague the nation. Legislation at the federal level ensures that all U.S. enterprises and government agencies protect consumer data with the same stringent security measures. State legislation such as the data breach bills which several states have already signed into law further protects the rights of their residents.

In the case of protecting all U.S. citizens from identity theft and financial fraud, however, the Federal government can offer the most protection regulating all communication and storage of private data across the country. Many U.S. citizens are wary of federal laws and feel that legislation at the state level provides more freedom and protection of their rights.

This is a topic worthy of debate, and yet the U.S. identification hierarchy starts at the federal level, with the social security number (SSN). This information is considered confidential by both state and federal governments and should be protected as it is a unique identifier for each citizen. Each state in the U.S. also requires residents to carry a state-issued ID, which is usually issued after a person submits their personal federal identification information—or SSN.

While the governments draft their bills and legislation, there is something that you can do to protect your privacy: ensure that the websites you visit are secured with SSL and have an ssl certificate from a reputable certificate authority.