To amend the Internal Revenue Code of 1986 to increase the limitation on capital loss applicable to individuals.

Mr. Speaker, I rise in strong support of H.R. 1525, the Internet Spyware or I-SPY Prevention Act.

I was pleased to join with my colleague from California, Representative Zoe Lofgren, to reintroduce this legislation. This bipartisan bill will impose tough criminal penalties on those that use software for nefarious purposes without imposing a broad regulatory regime on legitimate online businesses. I believe that this targeted approach is the best way to combat spyware.

Spyware is software that provides a tool for criminals to secretly crack into computers to conduct nefarious activities such as altering a user's security settings, collecting personal information to steal a user's identity or to commit other crimes. A recent study done by the National Cybersecurity Alliance revealed that over 90 percent of consumers had some form of spyware on their computers, and most consumers were not aware of it.

The I-SPY Prevention Act would impose criminal penalties on the most egregious behavior associated with spyware. Specifically, this legislation would impose up to a 5-year prison sentence on anyone who uses software to intentionally break into a computer and uses that spyware in furtherance of another Federal crime.

In addition, it would impose up to a 2-year prison sentence on anyone who uses spyware to intentionally break into a computer and either alter the computer's security settings or obtain personal information with the intent to defraud or injure a person, or with the intent to damage a computer. By imposing stiff penalties on these bad actors, this legislation will help deter the use of spyware and will thus help protect consumers from these aggressive attacks.

Enforcement is also crucial in combating spyware. The I-SPY Prevention Act authorizes $10 million for fiscal years 2008 through 2011 to be devoted to prosecutions involving spyware, phishing and pharming scams, and expresses the sense of Congress that the Department of Justice should vigorously enforce the laws against these crimes.

Phishing scams occur when criminals send fake e-mail messages to consumers on behalf of famous companies and request account information that is later used to conduct criminal activities.

Pharming scams occur when hackers redirect Internet traffic to fake sites in

order to steal personal information such as credit card numbers, passwords and account information.

This form of online fraud is particularly egregious because it is not as easily discernible by consumers. With pharming scams, innocent Internet users simply type the domain name into their Web browsers and the signal is rerouted to the devious Web site.

The I-SPY Prevention Act is a targeted approach that protects consumers by imposing stiff penalties on the truly bad actors, while protecting the ability of legitimate companies to develop new and exciting products and services online for consumers.

The I-SPY Prevention Act also avoids excessive regulation and its repercussions, including the increased likelihood that an overly regulatory approach focusing on technology would have unintended consequences that could discourage consumer use of the Internet, as well as the creation of new technologies and services on the Internet. By encouraging innovation, the I-SPY Prevention Act will help ensure that consumers have access to cutting-edge products and services at lower prices.

In addition, the approach of the I-SPY Prevention Act does not interfere with the free market principle that a business should be free to react to consumer demand by providing consumers with easy access to the Internet's wealth of information and convenience. Increasingly, consumers want a seamless interaction with the Internet, and we must be careful to not interfere with businesses' ability to respond to this consumer demand with innovative services. The I-SPY Prevention Act will help ensure that consumers, not the Federal Government, define what their interaction with the Internet looks like.

Finally, by going after the criminal behavior associated with the use of spyware, the I-SPY Prevention Act recognizes that not all software is spyware and that the crime does not lie in the technology itself but rather in actually using the technology for criminal purposes. People commit crimes; software doesn't.

H.R. 1525 is an effective, targeted approach to combating spyware, and I urge my colleagues to support this important legislation.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1525) to amend title 18, United States Code, to discourage spyware, and for other purposes, as amended.

Mr. Speaker, I yield myself as much time as I may consume.

Software and electronic communications are increasingly being used by criminals to invade individuals and businesses' computers without authorization. These practices undermine consumer confidence in the integrity and security of the Internet itself. Two particularly egregious examples involve the use of spyware and phishing scams.

Spyware is a form of software that helps gather information about an individual or organization without their knowledge. It also can be used to take control of someone else's computer and surreptitiously send information stored in that computer, such as the individual's personal information and passwords, to another entity where it can then be redirected for criminal purposes, including fraud, larceny, theft or other cybercrimes.

According to a survey last year by the FBI, computer security practitioners say that spyware is among the most critical threats to the security of our Nation's computer systems.

Phishing is another form of cybercrime. It is a scheme by which a criminal creates a Web site or sends e-mails that copy a well-known, legitimate business in an attempt to deceive Internet users into revealing personal information. Through phishing, for example, a criminal can trick an Internet user into revealing his bank account numbers or passwords.

Pharming is a version of phishing, and that involves the fraudulent use of domain names. In pharming, hijackers hijack a legitimate Web site's domain site and redirect traffic intended for the Web site to their own Web site where users may unknowingly provide personal information to the hacker.

This measure before us, H.R. 1525, aims to put a stop to these kinds of crimes that invade our privacy. It amends title 18 of the United States Code to impose criminal penalties, including up to 5 years in prison, on those who intentionally engage in spyware-related behavior in furtherance of other Federal criminal offenses.

Another thing the bill does is impose fines and imprisonment up to 2 years for anyone who engages in such practices with the intent to defraud or injure a person.

Finally, this measure authorizes $10 million per each fiscal year, 2008 through 2011, to help the Department of Justice combat these crimes.

I want to lift up the names of two of our Judiciary Committee members, Congresswoman Zoe Lofgren of California, and of course, Bob Goodlatte of Virginia, both of whom have put this legislation together and shepherded it through the hearing and the processes of the Judiciary Committee. I'd like to commend them for hard, effective work in developing and moving this bill on a bipartisan basis.

This is a targeted measure, ladies and gentlemen, that protects consumers by providing appropriately strong penalties for egregious behavior. I urge my colleagues to join us in support of it.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, the gentlelady from California, Zoe Lofgren, is the principal mover of this bill, and I'm pleased now to yield her as much time as she may consume.

Mr. Speaker, I am now pleased to yield such time as he may consume to the chairman of the Subcommittee on Crime of the Judiciary Committee, the gentleman from Virginia, Mr. Bobby Scott.

Mr. Speaker, this is a very important measure. We are finally dealing with those spyware crimes that invade our financial privacy, and I commend all of the actors on the Judiciary Committee that played a role in bringing this to our attention. Mr. Ric Keller has done an excellent job as well.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, as a proud original co-sponsor of the legislation before us, I speak in strong support of H.R. 1525, the ``Internet Spyware (I-SPY) Prevention Act of 2007.''

H.R. 1525 amends the federal computer fraud and abuse statute to make it unlawful to access a computer without authorization or to intentionally exceed authorized access by causing a computer program or code to be copied onto the computer and using that program or code to transmit or obtain personal information (for example, first and last names, addresses, e-mail addresses, telephone numbers, Social Security numbers, drivers license numbers, or bank or credit account numbers).

Further, H.R. 1525 discourages the practice of phishing, another scourge of the Internet. ``Phishing'' is a general term for using what appears to be either the Web sites of, or e-mails that appear to be sent from, readily identifiable and legitimate businesses. These fraudulent Web sites and e-mails are designed to deceive Internet users into revealing personal information that can then be used to defraud those same users. The `phishers' take that information and use it for criminal purposes, like identity theft and fraud. Phishing is adequately covered by the criminal code, but additional funds are needed to prosecute the crime. This bill would authorize 10 million dollars for each of the fiscal years 2008 to 2011 to combat phishing and spyware.

Mr. Speaker, as we all know too well, spyware is quickly becoming one of the biggest threats to consumers on the information superhighway. Spyware encompasses several potential risks, including the promotion of identity theft by harvesting personal information from consumer's computers. Additionally, it can adversely affect businesses, as they are forced to sustain costs to block and remove spyware from employees' computers, in addition to the potential impact on productivity.

Spyware has been defined as ``software that aids in gathering information about a person or organization without their knowledge and which may send such information to another entity with the consumer's consent, or asserts control over a computer with the consumer's knowledge.'' Among other things, criminals can use spyware to track every keystroke an individual makes, including credit card and social security numbers.

Some estimates suggest 25 percent of all personal computers contain some kind of spyware while other estimates show that spyware afflicts as many as 80-90 percent of all personal computers. Businesses are reporting several negative effects of spyware. Microsoft says evidence shows that spyware is ``at least partially responsible for approximately one-half of all application crashes'' reported to them, resulting in millions of dollars of unnecessary support calls.

The last point I wish to make, Mr. Speaker, is that H.R. 1525 is substantially similar to the bipartisan H.R. 744, introduced in the 109th Congress, which passed the House by a vote

of 395-1 and H.R. 4661, which passed the House during the 108th Congress by a vote of 415-0. H.R. 1525 is supported by numerous industry groups and privacy coalitions, including the Business Software Alliance, the Software & Information Industry Association, the U.S. Chamber of Commerce, and the Center for Democracy and Technology.

Mr. Speaker, I strongly support H.R. 1525 and urge all my colleagues to do likewise.

General Leave

Mr. Speaker, I rise in support of H.R. 1525, the Internet Spyware Prevention Act of 2007. I'm very pleased that my first stand-alone bill that will be passed in this House under the new Democratic majority is one that both protects Americans on the Internet and fosters continued technological innovation. I thank my friend, Congressman Bob Goodlatte, for working with me once again on this legislation to combat spyware.

Spyware is becoming one of the biggest threats to consumers on the Internet. Thieves are using spyware and key loggers are harvesting personal information from unsuspecting Americans. It also affects the business community that is forced to spend money to block and remove it from their systems.

Experts estimate that as many as 80 to 90 percent of all personal computers are infected with spyware. In short, it's a very real problem that's endangering consumers, damaging businesses and creating millions of dollars of additional costs.

This is a bipartisan measure that identifies the truly unscrupulous acts associated with spyware and subjects them to criminal punishment. This bill is the right approach because it focuses on behavior, not technology. It targets the worst forms of spyware without unduly burdening technological innovation.

The bill imposes tough criminal penalties on those who use spyware in furtherance of another Federal crime or to defraud or injure consumers. It also funds the Attorney General to find and prosecute spyware offenders and phishing scam artists.

Focusing on bad actors and criminal conduct is preferable to an approach that criminalizes technology or imposes notice-and-consent- type requirements. You know, bad actors don't comply with requirements. The more notices Internet users receive, in fact, the less likely they are to pay attention to any of them. Seventy-three percent of users don't read agreements, privacy statements or disclaimers on the Internet.

In 2005, the Pew Internet and American Life Project proved this point. A diagnostic site included a clause in one of its user agreements that promised $1,000 to the first person to write in and request the money. The agreement was downloaded more than 3,000 times before someone finally claimed the reward.

We don't want to overregulate user experience. We must avoid interfering with increasingly seamless, intuitive and interactive online environments. Regulation of technology is almost always a bad idea because technology changes faster than Congress can legislate; and what we attempt to regulate will morph into something else and render useless the regulatory scheme we adopt.

Legislation that attempts to control technology can also have the pernicious effect of chilling innovation by chilling investment into prohibited technological arenas. H.R. 1525 avoids these pitfalls by focusing on bad conduct, and that's why it has the broad support in my district in Silicon Valley, California.

What we're doing here today is important for consumers, for businesses. It's also important for the future of our high-tech economy.

I urge my colleagues on both sides of the aisle to vote in favor of this crucial legislation.

I thank the chairman for yielding.

Mr. Speaker, I rise in support of H.R. 1525, the Internet Spyware (I- SPY) Prevention Act of 2007. I would like to commend Congresswoman Lofgren and Congressman Goodlatte for developing the legislation and moving the bill on a bipartisan basis. Earlier this month the Subcommittee on Crime, Terrorism, and Homeland Security held a hearing and markup on the bill and reported it favorably to the full committee.

The bill amends title 18, U.S. Code, to impose criminal penalties on those who use spyware to perpetrate identity theft and numerous other privacy intrusions on innocent Internet users. The bill also provides resources and guidance to the Department of Justice for the prosecution of these offenses.

The bill is narrowly aimed at the practices of using ``spyware'' and ``phishing'' to harm consumers. Recent studies estimate that 80 percent of computers are infected with some form of spyware and that 89 percent of consumers are unaware of the fact that they have spyware. The greatest security and privacy challenges posed by spyware relate to technologies such as keystroke logging programs that capture a user's passwords, Social Security, or account numbers. This information can then be redirected for criminal purposes including fraud, larceny, identity theft, or other cyber crimes.

This bill combats spyware by clarifying that it is a crime, punishable for up to 5 years in prison, to intentionally access a computer without authorization by causing a computer program or code to be copied onto a computer and then using that program or code in furtherance of another Federal criminal offense. The bill also provides fines or imprisonment up to 2 years for anyone who, through means of that program or code, intentionally obtains, or transmits to another, personal information with the intent to defraud or injure a person.

The bill also authorizes funds to combat ``phishing.'' Phishing is a general term for using what appears to others to be either the Web site of, or e-mails from, well-known, legitimate businesses in an attempt to deceive Internet users into revealing their personal information. Phishing is adequately covered by the criminal code under existing Federal wire fraud or identity theft statutes, but additional funds are needed to prosecute the crime. This bill would authorize $10 million for each of the fiscal years 2008-2011 to combat phishing and spyware.

I would also like to note that the Energy and Commerce Committee is considering a bill on this subject as well. But that bill lacks the criminal penalty enforcement mechanism in this bill and in its place imposes a regulatory scheme which focuses on the uses of technology rather than the perpetrators of crimes. My concern is such a regulatory regime may unavoidably sweep in legitimate uses of the technology.

The I-SPY Prevention Act is a strong bill that protects consumers by providing criminal penalties for egregious behavior. Accordingly, I urge my colleagues to support this legislation.