FOR IMMEDIATE RELEASE
January 30, 2026

Congressman Pete Sessions Introduces Bipartisan Legislation to Combat Identity Fraud and Theft

Waco, Texas- Congressman Pete Sessions of Texas introduced bipartisan legislation to strengthen America’s digital identity infrastructure and protect individuals, businesses, and government programs from rapidly rising identity fraud and theft. The Stop Identity Fraud and Identity Theft Act establishes a government wide approach to addressing vulnerabilities in online identity verification that are increasingly exploited by organized criminal networks and hostile nation states.

Identity theft and fraud continue to impose massive costs on Americans and taxpayers. In 2023 alone, more than 353 million people were impacted by data breaches. The Government Accountability Office has estimated that federal programs could lose between $233 billion and $521 billion annually to fraud, much of it tied directly to compromised identities. During the COVID era, identity based fraud in unemployment programs alone was estimated between $100 billion and $135 billion. Financial Crimes Enforcement Network reporting shows that more than 70 percent of suspicious activity reports filed by banks are now tied to identity fraud, encompassing hundreds of billions of dollars in transactions.

The legislation responds to these growing threats by establishing an identity fraud prevention innovation grant program for states. These grants would help states modernize identity systems, develop secure digital versions of existing credentials where they choose to do so, and protect against emerging risks such as artificial intelligence driven deep fakes. The bill builds on work already directed by Congress for the National Institute of Standards and Technology to develop voluntary digital identity guidelines, while recognizing that many states and local agencies lack the resources to implement them.

Importantly, the bill does not mandate digital identification, does not eliminate physical credentials, and does not require any individual to obtain or use a digital driver’s license or digital identity. Participation by states and individuals remains voluntary.

“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 “Criminal organizations and hostile nation states are exploiting outdated identity systems, costing taxpayers hundreds of billions of dollars and putting Americans’ personal information at risk.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, welcomed the bipartisan effort.

“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.”

The Stop Identity Fraud and Identity Theft Act is designed to protect consumers, safeguard government benefit programs, and strengthen the integrity of the United States financial system while preserving individual choice and state authority.

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