Global: Australia’s Digital Identity Trust Exchange Set for Launch by Year-End

Australia is poised to unveil its ambitious digital identity program by the end of 2024, introducing the national Trust Exchange (TEx) to facilitate seamless digital identity verification across various services and transactions.

Government Services Minister Bill Shorten is expected to announce the initiative during his address to the National Press Club on Tuesday, according to NewWire.

The implementation of TEx will be overseen by Services Australia, transitioning from its current proof-of-concept phase to full public deployment. The digital identity credentials will be integrated into the myGov wallet, which will securely store personal information such as date of birth, address, citizenship, visa status, qualifications, occupational licenses, and safety checks. Users will have control over what data is shared, aiming to minimize the disclosure of unnecessary sensitive information.

The system will also feature a digital token mechanism, allowing users to verify their details without disclosing personal information—referred to as a “digital thumbs up.” This method provides a confirmation of identity without exposing any data to potential cyber threats.

Shorten’s prepared remarks emphasize user control: “You choose which information to share from your digital wallet and consent to its use. You will have a record in your myGov wallet of what you shared and with whom.”

Examples of TEx in action include scenarios like using digital ID to book a hotel room or proving age at a local club. Users will simply present their phone to a scanner, which retrieves a token confirming their identity. “None of that information needs to be kept by the club,” Shorten explains. “The token is a valuable confirmation to the club but contains no data that a cybercriminal could exploit.”

The Australian government is highlighting the enhanced privacy and security features of the TEx digital identity scheme, which is expected to surpass the stringent standards of the EU’s General Data Protection Regulation (GDPR).

Concerns Over myGov Security

Amid these advancements, Services Australia is facing criticism over its handling of myGov fraud issues. The Commonwealth Ombudsman’s report, “Keeping myGov Secure,” criticizes the agency for its inadequate response to unauthorized linking of member service accounts to fake myGov accounts.

Ombudsman Iain Anderson noted the distress and anxiety experienced by individuals whose personal information was stolen and misused. The report highlights that Services Australia has not sufficiently strengthened security measures against unauthorized linking, which has led to instances of tax fraud. It also points to a lack of formal processes for managing risks within the myGov ecosystem.

The report includes four recommendations and two suggestions to improve Services Australia’s data protection practices. These include enhancing security measures, such as implementing multi-factor authentication (MFA) for high-risk transactions, and improving coordination among agencies involved in the myGov system.

“Agencies managing systems involving multiple stakeholders, like myGov, should adopt a comprehensive view of associated risks to identify areas for improvement and support other agencies in enhancing their capabilities,” the report advises. It underscores the importance of understanding system risks and effectively managing shared risks to bolster overall security.