Issuers lack Blunkett's conviction that ID plan will help combat fraud

Issuers lack Blunkett's conviction that ID plan will help combat fraud

When launching his proposals this week for the controversial national ID card system,David Blunkett, the Home Secretary, cited combating fraud as a primary justification for the scheme.

Identity theft is now one of the fastest growing forms of fraud, but critics question how far the new ID cards could tackle the problem.

The cards are expected to roll out from 2007-though for some people it starts even earlier. Under legislation to be published in January, the 5m people who apply each year for a passport or driving licence will automatically be issued with an ID card and have their personal details stored on a new national identity computer database.

Mr Blunkett is keen to get across the robustness of the card scheme, illustrated by his emphasis on anti-forgery measures such as hi-tech electronic eye and fingerprint scans.

However, as far as credit card issuers go, the scheme's impact on fraud is likely to be limited. The country's largest issuer, Barclaycard, feels the new system would be merely "extra back-up evidence" when authenticating applicantions.

A spokesman says: "It's only ever going to be one element of a much wider programme of initiatives [to combat fraud].

"As a company we have to do things now that we know will work to protect our customers. The [ID cards] might help with some types of fraud but the thing about fraudsters is that when one type of fraud is made more difficult, they move on to.....continued below

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the next.

"The good thing is that the more obstacles put in their way, the harder it is for them."

A spokeswoman for Apacs - which has been consulted by the Home Office on certain aspects of the ID card - says there is little evidence that the card would offer any sort of "grand solution" to the problem of card fraud.

She agrees with Barclaycard that even if the new system made identity fraud a bit harder, it would not in itself eliminate it. Neither would it have any real impact on other forms for card fraud, she adds.

"The big card fraud will be impacted on by chip and PIN," she says. "ID cards are not really going to make a difference to this. Nor is it going to impact on [CNP] either.

"The impact the cards ultimately have depends on the final form they take but I think what they could do is act as the main form of ID say, when people want to open an account, which is at present, it has to be said, less than robust."

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