In 2010, 8.1 million Americans were victims of identity theft with losses totaling $37 billion.
With identity theft costing Americans billions of dollars per year in losses, more should be done to protect identity online. One important step towards this goal is for the United States to establish a national electronic identification (e-ID) system. An e-ID system would allow consumers to replace their current set of usernames and passwords with a more secure credential that provides multi-factor authentication, such as a mobile phone, smart card, or software-based digital certificate. An e-ID system would also serve as a platform for businesses and government to develop innovative and secure online services. ITIF recently completed a study that provides a set of recommendations on what the U.S. can learn from early adopters of e-ID systems to ensure its system is secure, interoperable and easy-to-use.