http://www.wral.com/news/9406313/detail.html

RALEIGH, N.C. -- North Carolina military veterans _ worried about a massive security breach that may expose them to identity theft _ would be able to block access to their credit records under a bill approved Wednesday by a House panel.

That measure, the first of its kind in the nation, according to proponents, follows the recent disclosure that the names, Social Security numbers and birthdates for up to 26.5 million veterans were stolen last month from the home of a Veterans Administration data analyst.

"We have people that are vulnerable today," Charlie Smith, director of North Carolina's Department of Veterans Affairs, said Wednesday. "Something needs to be done now."

The U.S. Veterans Affairs Department is trying to contact about 17 million personnel who may have compromised Social Security numbers and on Wednesday offered free credit monitoring to each them. But state Rep. Bruce Goforth, the bill's sponsor, urged the VA to take full responsibility by paying to block access to their accounts.

"They are the ones that should really pick up the tab on this _ not our veterans," said Goforth, D-Buncombe.

Under existing North Carolina law, any victim of identity theft can get a free credit freeze. Some states, including North Carolina, allow consumers to pay for a credit freeze before encountering fraud, but haven't committed to offering any similar services for free.

A credit pause prohibits any access to a person's account histories, preventing even the account holder from getting a new charge card, loan or other credit-based contracts. North Carolina veterans would have until the end of the year to initiate the service and could keep it at no charge for up to a year.

Credit agencies and retailers, which frequently offer consumers new credit cards, have largely opposed the use of preventative freezes. But those groups came together on this proposal to offer what N.C. Retail Merchants Association lobbyist Andy Ellen called a "reasonable compromise."

"Our credit agencies are doing the people of North Carolina a favor for a federal screw-up," said Rep. Grier Martin, D-Wake, a member of the Military, Veterans and Indian Affairs Committee that passed the proposal.

North Carolina is home to more than 770,000 veterans and 90,000 active duty members of the military. Surviving spouses of military personnel can also get a credit freeze under the proposal, and family members can act on behalf of active-duty personnel overseas.

"I'm extremely concerned," Goforth said. "This is an opportunity for us to take the step to protect our veterans."