White House to announce ID system for Internet

January 7, 2011 – 11:42 am

The Obama administration is expected to announce today plans for an Internet identity system that will limit fraud and streamline online transactions, which White House officials say will lead to a surge in Web commerce.

The plan has been in the works in order to secure online identities and the system, led by the U.S. Commerce Department, will be voluntary and maintained by private companies. These companies include Verizon, Google, PayPal, Symantec and AT&T.

The move would cause a huge shift in consumer use of the Internet. Most companies have separate systems for signing on to e-mail accounts or conducting secure online transactions, requiring that users memorize multiple passwords. With the new program, consumers would sign in just once, and would then be able to move among other Web sites.

Once the system is in place, Google, for example, would be able to join a framework of trusted companies that have adopted the rules and guidelines established by the Commerce Department. Consumers would then be able to conduct other business, including banking or shopping, with members of the group without having to provide additional information or verification.

This new system might even lead to a reduction in the size of Internet help desks, which spend the bulk of their time assisting users who have forgotten their passwords.

The new system would likely put an end to traditional passwords. Users would rely, instead, on devices like smart cards with embedded chips.

But there is concern that the new system won’t protect privacy as well as the government is promising. Having a single point of failure, many say, will not be good for protecting privacy. Some have even called it a precursor to a national ID card, which many are vehemently opposed to.

While government and big business hash out the details, consumers should remember that it’s important to change your passwords frequently, and make them difficult to crack. Use upper and lower case letters, as well as numbers. If you must write them down in order to remember them, don’t store the paper near your computer.

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