Identity Cards - the Real Issue

IDENTITY CARDS – THE REAL ISSUES

The government has now re-introduced the controversial Identity Cards Bill, which was published on Tuesday 24^th May 2005. This is only what is known as the ‘enabling legislation’ and does not spell out the mechanics of the operation. Costs have been estimated at as much as £10 billion and could rise even more. By the same token, the cost to the individual is likely to be in the order of £100 for a combined passport and identity card. Initially it will not be compulsory to have an identity card. The scheme, should it be approved by Parliament is scheduled to start around 2007 and may become compulsory around 2010.

An awful lot has been written about this proposed legislation, a lot of it very emotive. Perhaps we should examine the realities of the government’s proposals.

Of course, great emphasis has been placed on the issue of National Security and perhaps if the government had stuck to that line, the public and indeed parliament might have been more receptive to the arguments. However, the government are now saying that they will also prevent Identity Fraud. Lets examine the facts.

According to government figures, Identity fraud is currently running at £1.4 billion per year, although that does not identify how much of that is personal identity theft as opposed to corporate identity theft. There are many people who have suffered from this type of crime and there is no doubt that it can leave the individual with difficulties when trying to obtain even the most the mundane daily credit facilities such as utility provision or mobile telephone contracts, never mind such substantial items such as a mortgage. The stories are endless and whilst there are steps that can be taken to protect oneself going forward, nevertheless it causes a great deal of inconvenience. There is nothing in the proposed legislation that will give much comfort to victims; indeed there is an argument that the proposed Identity Card could exacerbate the problem. In real terms fraud currently costs every household in the UK £650 per annum. Whilst, quite rightly, everybody is concerned about street crime and violent crime, fraud impacts on every member of society.

There will be the creation of a National Identity Register and a National Identity Scheme Commissioner will oversee it. He/she will, however, report to the Secretary of State. The purposes of the Act are set out as:

in the interests of national security;
for the purposes of the prevention or detection of crime;
for the purposes of the enforcement of immigration controls;
for the purposes of the enforcement of prohibitions on unauthorised working or employment; or
for the purpose of securing the efficient and effective provision of public services

The only aspect that doesn’t smack of ‘big brother’ is (2). for the purposes of the prevention and detection of crime, a sentiment that is likely to meet with majority approval. However, in reality, the information recorded for Identity Cards will not be made available to the commercial sector unless the individual consents, but only to the Intelligence Services, the Police, the Inland Revenue and HM Customs. The Secretary of State has authority to provide information to the Intelligence Services but the remaining bodies must make application and it will only be provided to them if they can show that other methods of obtaining the relevant information have failed.

Initially it will not be compulsory to have an Identification Card and that poses another issue; will those people who do not have an ID card become disadvantaged? It is suggested that registration may become compulsory, if that is the case how will people on low income and benefits find the funds to comply or will registration become a benefit?What is the information that will be used to identify someone? The information will be termed ‘registrable facts’ and these will consist of;

Your identity
Where you reside
Where you have previously resided
Times at which you were resident in other parts of the UK
Your current address
Previous addresses
Information about unique numbers allocated to you such as NHS card, passport etc
Information about occasions that relate to you such as birth, marriage, divorce etc.
Any information that you might wish recorded in the Register.

You could be forgiven for thinking that a lot of that information is already a matter of record and is available to the determined fraudster. What if the fraudster not only ‘steals’ your ID but also actually obtains an ID card in your name with his/her fingerprint on the card and his/her iris recognition? How difficult will it be for you to prove that the issued card was fraudulently obtained?

The only way that ID cards will impact on fraud and identity theft is if the commercial sector is provided with access to verification. If the government are serious then we need to see a lot more information before we can make a considered judgement. We also need to be assured that adequate controls are in place to protect the information and prevent unauthorised access.

Peter Ferguson

Managing Director

Corporate Fraud Solutions Limited,

3 Camden Place,

Preston PR1 3JL