IL HB4538

Creates the Identity Verification for Consumer Services Act requiring entities providing utilities, telecommunications, credit accounts, online financial accounts, government benefits, and health insurance to verify customer identity before initiating or modifying service agreements.

Mandates identity verification using a valid government-issued photo ID plus one additional authentication method: proof of address, biometric data (fingerprint/facial scan), multi-factor authentication, or knowledge-based authentication.

Requires entities to report attempted or confirmed identity theft to the Attorney General within 10 business days of discovery and to retain verification records for at least 3 years.

Exempts services with in-person physical ID checks, services for children under 13 with verified parental consent, and entities already subject to more stringent federal identity verification regulations.

Violations constitute an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act, with the Attorney General authorized to enforce; effective January 1, 2027.