ID cards: the cost to business

The government last week began the introduction of a national ID card. In a three-part series, Computing looks at some of the critical issues that must be debated.

Written by Pete Warren

Cost has been the ID card battleground on which the Home Secretary's Cabinet opponents have decided to fight so far.

The government estimates that each card will cost £35. A further £4 has been factored in to avoid "accusations of underestimating the cost", admitted David Blunkett this week.

The payback, he believes, would be greater security, fraud reduction and convenience. What remains uncalculated, however, is the potential costs beyond the individual cardholder.

The Home Office admits that intricacies such as private sector compliance have not been factored into the final bill of about £3.2bn.

There has yet to be any discussion about the potential effect on business, particularly if the ID card number replaces the social security number. The Home Office will only say that the idea is "being looked at".

Social security reform is, however, the logical place to start if the government wants to achieve 'efficiencies'.

For that to happen, ID cards would have to sit at the centre of a new database that would become the government's main source of information for dealing with the populace.

The government admits that one of the reasons for social security fraud is that there are more social security numbers in existence than people entitled to claim benefits.

The existing database is corrupted, and the only way to change that is to pin benefits to an ID card and phase out the old one.

That would make the ID card number the basis for the government's relationship with citizens. But what no one is mentioning are the ramifications for businesses which, up until now, have built their systems on the social security number.

For this new system to work, someone, presumably the employer, will be required to check and store IDs.

As we are talking about a biometric ID here, that means there has to be some means of scanning, and that can be costly.

And for those who are not convinced that it will work like this, consider the government legislation on banks to stamp out fraudulent accounts.

Last year the Royal Bank of Scotland was fined more than £750,000 by the Financial Services Authority for failings over the opening of new accounts.

It is a racing certainty that banks anxious to avoid such penalties will feel that the only way they can cover themselves in the future is by pinning a biometric against an account applicant.

In the same way, it is also clear that companies anxious to avoid prosecution for illegal working and other government compliance issues will rapidly see the legal value of storing a government sanctioned biometric on their systems.

Blunkett assured parliament this week that the process would not be rushed. About 80 per cent of the population are in favour, but support is largely based on a vague idea, inspired by terrorist threats. A more sober debate has yet to begin.

ID cards: can technology cope?

Tags:

Further reading

Public Sector 2005

  More...

Government to press on with ID cards

But experts still warn that biometric technologies are not yet mature enough   More...

Heading for an identity crisis?

The government wants national ID cards within 15 years, but can the many bodies involved be ready in time?   More...

House of cards

ID cards are back on the agenda, but just how secure will they be?   More...

Related articles

Do you agree?

Advertisement

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Watch

04 Jul 2008

5.51 MBPodcast Special: Views from the Valley More...

03 Jul 2008

3.46 MBGreen grid computing, Trojans stop play and location-based services More...

02 Jul 2008

3.2 MBOnline TV, SME security and flexible laptops More...

Poll

EUROPEAN E-COMMERCE

EUROPEAN E-COMMERCE

Are you happy making an online purchase from another European country?

Previous poll results

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Spotlight

Online pornography

US rebate cheques spent on porn

Economic stimulus package works wonders   More...

Louis Vuitton

UK online fake goods market worth £800m

Legal experts warn of dramatic rise in 'e-fencing'   More...

Advertisement

Fibre-optics

New fibre-optic connections overtake cable

Broadband first-timers choosing fibre where possible   More...

Stars and Stripes

Cyber-crooks celebrate Independence Day

Security firms warn users to take extra care   More...

Advertisement