In a world in which many Americans are concerned about online fraud, identity theft, and other problems, some have touted digital identification as offering a better way to conduct business while protecting consumers.
Different variations of the technology are being tested worldwide with several countries slowly rolling out digital ID programs. Now, it appears the federal government is dipping its toe in the water.
The Improving Digital Identity Act of 2021, introduced and spearheaded by Rep. Bill Foster (D-IL), aims to revolutionize how we verify identities online, which would be a giant leap toward the digitization of identity in the U.S.
If passed, the bill would establish a White House task force dedicated to integrating digital ID technology. But some have expressed concerns over privacy and surveillance.
The primary aim of this legislation is to bolster security and reliability of digital transactions by cultivating a robust framework for identity verification. Rep. Foster touted the measure as a way to not only protect those making online purchases but also to address the growing threat of deepfake technology and cyber fraud, according to Mobile ID World.
This would eventually lead to the establishment of a universal standard to make digital spaces more accessible, especially for underbanked and unbanked populations.
In an interview with NextGov/FCW, Foster emphasized the importance of establishing a federal digital ID standard to offer an additional authentication layer for online transactions. He highlighted the growing threats of deepfake technologies and cyber fraud, suggesting that providing individuals with the means to verify their identities is a critical step in combating these issues. Financial institutions have shown strong support for the bill, seeking a standardized method to meet Know Your Customer (KYC) requirements. Foster pointed to the significant financial losses due to COVID-related fraud as evidence of the need for secure digital credentials.
A recent report from the Information Technology and Innovation Foundation (ITIF) supports the bill’s objectives, indicating that a federal framework could encourage broader adoption and improve interoperability between states. The proposed legislation avoids mandating a single federal identity credential, instead allowing states the flexibility to implement their own solutions.
The task force established by the legislation would include members from federal, state, and local governments and develop identity verification methods that would protect people’s privacy and make for a streamlined process between various digital systems.
Under the proposed legislation, the federal government would provide grants to states to be used to enhance their digital identity systems. States that receive the grants would use "Not less than 10 percent of grant funds to provide services that assist individuals with obtaining identity credentials or identity verification services needed to obtain a digital driver’s license or digital State identity card.”
Some of the advantages to this legislation would include enhanced security and reduced fraud. By establishing a more rigorous digital identity framework, the measure would significantly reduce identity.
But the bill is not without its pitfalls. The potential centralization of digital identities could increase risks related to data breaches and misuse. Indeed, getting the government involved in digital ID could pave the way for even more mass surveillance, with the state being able to track one’s purchases and other online activities. Having a centralized system would only make it easier for the state to monitor citizens without cause.
As the technology continues to evolve, it seems inevitable that we will someday live in a world in which much, if not all, of our information is digitized. Most will likely embrace the technology because of the benefits. After all, who wouldn’t want the convenience of not having to carry around a bunch of cards while being vulnerable to criminal elements seeking to steal their identities? Digital ID would certainly help in that respect.
However, the involvement of the government should remain a concern for many. When the state is able to sink its grubby paws into people’s personal lives through technology, it should raise more than a few eyebrows, especially since federal agencies have already shown they don’t give a rip about respecting our constitutional rights. Remember when it was revealed that the FBI illegally spied on Americans using the Foreign Intelligence and Surveillance Act? Allowing the government to play a role in digital ID would only make this problem worse – especially if Congress fails to set up safeguards preventing federal agencies from butting into our private lives.
