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Australia’s digital ID plan doesn’t meet global privacy standards- here’s what the government need to do to fix that
- Australia's new digital ID system, Trust Exchange (TEx), is designed to securely verify people's identities using digital tokens and simplify how we prove who we are online. However, compared to international standards like those in the European Union, it has several privacy issues. As a centralised system, everything will be monitored, managed and stored by a single government agency, making it more vulnerable to breaches. The system does not align with the World Wide Web Consortium's verifiable credentials standards. Moreover, the token-based system behind Australia's digital ID system creates the risk that different service providers could track users across services.
- To make the system more decentralised, giving users control over their digital identities and reduce the risk of centralised data breaches, the federal government should address the gaps in the current framework. For instance, the digital ID system should automate the selection of an optimal, varied set of credentials for each verification to reduce the risk of user profiling. Moreover, the system should have stringent rules to get explicit consent for collecting and processing biometric data.
- The EU's digital identity system regulation builds on global standards around digital identity management that ensure people only share the minimum required information and retain control over their digital identities. In contrast, Australia's system has several privacy issues and does not meet international standards. These standards are crucial in ensuring its digital ID system is successful.
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