The cost of stopping ID theft

MSNBC.com's Bob Sullivan opines that we're overlooking the fundamental problem behind the recent thefts of personal data about millions of consumers:

Theft of personal data is prevalent for one simple reason: the data is incredibly valuable. It's time Congress and U.S. financial institutions take an honest look at why that is, at the only reason anyone wants to steal all that personal data in the first place: the free-flowing, overflowing issuance of instant credit.

Today, consumers can walk into virtually any electronics store with an empty wallet and walk out with a $3,000 television set in a few moments. Often, all that's required is a Social Security number that happens to be attached to a decent credit rating. As long as these stolen nine digits are worth $3,000 or more, criminals will always find a way to take them.

Only meaningful reform of the way our nation distributes instant credit will change this equation. Hackers will always steal what's valuable; only by de-valuing personal information like Social Security numbers will the rash of high-tech data thefts stop.

The credit and retail industries fear any interruption in the free-flow of credit, saying it will cut down on consumer impulse buys. So we sacrifice the privacy of millions to protect the ability to spend much of our future earnings in an instant. It's time to openly debate the wisdom of that trade-off.