Legislation seeks to warn users of file-sharing networks about identity theft, stolen information

MINNEAPOLIS
— Two senators are pushing legislation that would force the makers of
consumer file-sharing programs to warn users how much information they
may be giving away.

A bill introduced by Sen. Amy Klobuchar, D-Minn., and Sen. John Thune, R-S.D.,
seeks to protect consumers who don’t understand that peer-to-peer
Internet file-sharing programs may inadvertently open their computers
to ID theft or other harmful snooping by unscrupulous users of such
programs.

Peer-to-peer, or P2P, programs are best known for
being used to illegally share music and movie files over the Internet.
But the programs are not illegal and have legitimate uses, including
sharing photos and home movies, playing some online games and Internet
phone calling. The programs include uTorrent, Shareaza, Ares, Limewire
and BitComet.

Consumers can become victims of identity theft or
financial loss when personal information is uploaded via the P2P
program without their knowledge.

“The problem is that, without proper precautions,
P2P software can allow anyone on the network to gain access to all the
files on your computer, not just the ones you intend to share,”
Klobuchar said in a statement. “By allowing access to private financial
or family records, it’s an invitation to identity thieves and sexual
predators.”

Such losses have already occurred. Last August a Seattle
man was sentenced to more than three years in prison for using P2P
software to steal personal information and commit fraud. In February,
the FTC said it had notified nearly 100 businesses and government
agencies that personal information, including data about customers or
employees, had been “shared” by their computer networks and was
available online.

The bill, called the “P2P Cyber Protection and Informed User Act,” has been passed in the House of Representatives and is awaiting Senate action, said Ross Corson,
a Klobuchar spokesman. It would require P2P software makers to inform
consumers of the risks at the time the software is installed and to
make the P2P software easy for consumers to turn off. In addition, the
P2P software would have to require consumers to “opt in” to file
sharing before it would function. Enforcement of the law would be
delegated to the Federal Trade Commission.

Klobuchar sought to highlight the bill at a Monday press conference at Best Buy headquarters in Richfield, Minn.
In many cases, P2P software is downloaded by children to share music
and music videos from their parents’ computers, but the kids don’t
understand the risks involved, she said. Best Buy’s Geek Squad, which took part in the press conference, urged consumers to check out the reputation of a P2P program on Google before downloading it to their computers.

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