US State Creates Identity Theft Agency

Gov. Arnold Schwarzenegger opened a new office Wednesday to fight high-tech identity theft -- a move activists said will help as firms fail to meet California's landmark consumer privacy laws.

The Schwarzenegger administration merged separate departments into the single California Office of Information Security and Privacy Protection, which officials said will be unique among states as it helps guide law enforcement, businesses, advocacy groups and consumers.

Schwarzenegger, who signed legislation carrying out the merger, has convened two summits so far against identity theft, which experts say is escalating as the Internet opens up new opportunities for criminals.

Government and business groups have vowed to work together more closely, while urging consumers to protect themselves against data theft with computer firewalls and other software programs that protect against online intrusions.

The new agency combines the former Office of Privacy Protection in the Department of Consumer Affairs, which opened in 2001, with the state Information Security Office, formerly part of the Department of Finance.