Identity Theft and Assumption Deterrence Act of 1998

Identity Theft and Assumption Deterrence Act of 1998 - Amends the Federal criminal code to prohibit identity fraud. Imposes penalties upon anyone who, in interstate or foreign commerce or through the use of a communication facility, knowingly, with intent to defraud, and in order to receive payment or any thing the aggregate value of which is at least $1,000: (1) receives, acquires, obtains, purchases, sells, transfers, traffics in, steals, possesses, or uses any personal identifier, identification device, personal information or data, or other document or means of identification of any other entity or person; (2) assumes, adopts, takes, acquires, or uses the identity of any other entity or person; or (3) attempts, solicits another person, or conspires with another person to commit such offense.

Authorizes the United States Secret Service to investigate offenses under this Act, subject to terms of an agreement to be entered with the Secretary of the Treasury.

Directs the United States Sentencing Commission to amend the Federal sentencing guidelines to provide for sentencing enhancements for a defendant who is convicted of an offense under this Act in connection with another specified offense, based on: (1) the number of victims involved; (2) whether the offense involves the stealing or destroying of a quantity of undelivered U.S. mail; and (3) the potential loss that could have resulted from such offense.

Includes within the definition of "contraband" (subject to forfeiture) specified equipment pertaining to identity fraud.

Provides for mandatory restitution for victims of identity fraud which may include payment for any costs, including attorney's fees, incurred by the victim: (1) in clearing his or her credit history or credit rating; or (2) in connection with any civil or administrative proceeding to satisfy any debt, lien, or other obligation of the victim arising as a result of the defendant's actions.

Directs: (1) the Secret Service and the Federal Bureau of Investigation to collect and maintain certain information and statistical data relating to identity fraud; (2) the Secretary of the Treasury, the Chairman of the Federal Trade Commission, the Attorney General, and the Postmaster General to study and report to the Congress on the nature, extent, and causes of identity fraud and the threat it poses to financial institutions and payment systems and to consumer safety and privacy; and (3) the Secretary of the Treasury to promulgate such regulations as necessary to include identity fraud as a separate characterization of suspicious activity for purposes of reports by financial institutions of suspicious transactions.