Closing the Pre-Paid Mobile Device Security Gap Act of 2016

Closing the Pre-Paid Mobile Device Security Gap Act of 2016

This bill requires authorized resellers of pre-paid mobile devices or SIM cards to require purchasers to provide their name, home address, and date of birth.

For in-person sales, an authorized reseller must require purchasers to display for verification: (1) a government-issued photographic identification card or a document acceptable under the Immigration and Nationality Act for employment authorization or establishing identity; and (2) any two of a Form W-2 Wage and Tax Statement from the Internal Revenue Service, a Form 1099 Social Security Benefit Statement or a Form 1099 from another federal agency, or a document containing personal identifying information that the Department of Justice (DOJ) finds to be acceptable. For all other sales, an authorized reseller must require purchasers to submit their: (1) credit or debit card account information, (2) Social Security number, (3) driver's license number, and (4) any personal identifying information that DOJ finds to be necessary.

Authorized resellers must make a record of their sales that includes: (1) the information obtained from purchasers to verify their identity; (2) the date of sale; (3) the manufacturer and the wireless carrier of the device or SIM card; (4) any assigned telephone number or other identifier of the subscriber or account; and (5) if applicable, the international mobile equipment identifier number, electronic serial number, mobile equipment identifier, international mobile subscriber identifier, and machine address code. Within 30 days after a sale, an authorized reseller must transmit such record to the wireless carrier for the device or SIM card.

Purchasers are subject to criminal penalties for providing false or misleading identifying information or documents. A civil penalty is established for authorized resellers or wireless carriers who fail to comply with this Act.

The bill also prohibits and establishes criminal penalties for the sale of a pre-paid mobile device or SIM card by a person who is not an authorized reseller.