Paper 2016/627

Cyber Passport: Preventing Massive Identity Theft

Gideon Samid

Abstract

Identity Theft is the fastest rising crime in the United States with about 7% of US adult population victimized annually. This frightening scope warrants a bold government intervention. Here is a detailed proposal. "Cyber Passport" addresses itself to the main threat: a breach of a merchant, bank, or government department resulting in theft of identities of millions of citizens, which for a long time live in fear of residual violations. The solution is based on two principles: (i) online transactions may require a randomized, readily replaceable, short lived code (cyber passport); (ii) the cyber passport will be comprised of a working code, and of an un-stored code which is known only to the issuing agency and to the individual recipient. When implemented these two principles will prevent a massive violation - the biggest plague today. The un-stored code cannot be stolen from any business database because it is not stored there. Hackers will still be able to steal everything but they will have to go retail, no more wholesale theft. Cyber-Passport is not a panacea, but it brings the threat down to size. The program will be optional for citizens, and voluntary for participating establishments facing the public. It will require some legislation, a non-trivial administration, and the use of modern cryptographic technology. Albeit, an organic growth implementation plan is presented herewith.