In The News

High-tech moves to protect identities

The Age
November 13, 2003
By Garry Barker, Technology Editor

Australia's banks are considering more sophisticated systems to check customers' identities as part of a Federal Government campaign to curb the rapid spread of identity theft and fraud.

Justice Minister Chris Ellison yesterday foreshadowed changes to the proof-of-identity systems that banks, passport offices and other agencies use as he released a report saying identity fraud was costing Australia more than $1 billion a year.

Senator Ellison also confirmed the Government was pushing for more-secure drivers' licences and extended use of facial recognition systems at airports.

These and other high-tech measures were needed to combat stolen and fraudulent identities that were the tools of terrorists, people smugglers, money launderers, welfare cheats and organised criminals, including pedophiles, he said.

Without accurate, reliable and tamper-proof systems for establishing identities, the security of the nation and individuals would become increasingly at risk and monetary fraud would rapidly increase, he said.

He made the comments while launching the first of three annual studies into identity theft and its effects in Australia.

The Securities Industry Research Centre of Asia-Pacific (SIRCA) report uses data compiled at 25 universities in Australia and New Zealand.

The report estimates that identity fraud cost Australia at least $1.1 billion in direct costs in the last financial year.

The Commonwealth Government, the financial intelligence agency Austrac and financial institutions fund SIRCA.

"We want to develop a common set of identifying documents of higher integrity that will be much harder to forge, making it more difficult to impersonate someone," Senator Ellison said.

These included new-style passports with embedded smartcard computer chips due to be introduced next year and, in conjunction with states and territories, drivers' licences with enhanced integrity and anti-forgery features. More-secure credit cards were also being developed. But he rejected any idea of a 21st century equivalent of the Australia Card, the national identity document that sparked outrage when it was suggested in 1987. "We do not propose an Australia Card," he said. "We believe there are other methods of achieving that degree of assurance.

"There is a school of thought that says if you have only one card to forge or steal or to break, (theft) is made easier."

The Government was negotiating with the financial industry about using documents of higher integrity in the 100-point test, he said.

"The principle of a common set of ID documents of higher integrity is a very important step forward," he said.

The Government was also looking at cross-matching data between agencies and online verification of an identity. "That would allow very quick checking of someone coming into CentreLink or the Department of Immigration," he said. There had also been "a high level of co-operation" from state and territory governments in developing more secure driver's licences, he said.

Computerised facial recognition systems, such as SmartGate, which the Customs Service was testing at major airports, showed great promise, Senator Ellison said.

Tests using airline flight crews had been highly successful and the checks could now be widened to include passengers such as frequent flyers.