Dealing with the collection and storage of PII can be a daunting task for IT and cybersecurity teams. The cost and risk associated with managing and protecting data from hackers, as well as handling the aftermath of a breach, can be overwhelming when dealing with millions of customer records.
However, there is a glimmer of hope on the horizon with the upcoming launch of a new digital verification system in Australia. Set to enter a pilot phase in January 2025, the Trust Exchange (TEx) system aims to revolutionize the way Australians provide their personal information while simultaneously enhancing data security.
Currently in the proof of concept stage, TEx will enable Australians to share their personal information via a digital wallet, eliminating the need for businesses to access sensitive PII for verification purposes. This not only safeguards individuals’ privacy but also reduces the risk of data breaches for businesses.
What is Australia’s planned Trust Exchange?
The Trust Exchange system in Australia will allow individuals to verify their identity or share specific details using information stored in their central MyGov account. MyGov serves as the primary portal for Australians to access various government services, including taxation, health, and social security.
How will the TEx system work in practice?
The TEx system will operate through three transaction categories:
- Proving identity without disclosing sensitive information.
- Sharing selected personal details.
- Sharing a verified credential.
TEx will verify information using a ‘digital thumbs up’
Through a unique digital token system, TEx will offer businesses verification without divulging private information directly. This streamlined process ensures data accuracy without jeopardizing individuals’ privacy.
Individuals will choose what to share
Empowering individuals, the TEx system allows users to control the information they share with businesses, ensuring consent and transparency in data exchanges. It also provides a comprehensive record of shared information for enhanced data tracking.
Verification based on government’s data pool
Data verification will leverage the robust pool of information maintained by Australian government agencies, alongside data stored at state levels and centralized through MyGov. This decentralized model prioritizes safety and security in citizen data management.
What use cases will there be for Trust Exchange?
Trust Exchange will facilitate verified information sharing for various purposes:
- Age and date of birth verification.
- Address validation.
- Citizenship and visa status confirmation.
- Qualifications and licenses authentication.
The envisioned applications of TEx span across multiple sectors, offering simplified processes for contracts, rental applications, age verification at establishments, and streamlined job applicant verification.
What will the Trust Exchange mean for businesses?
The adoption of TEx by businesses is projected to yield operational efficiencies, reduced data risks, and cost savings in data management efforts. Businesses can outsource identity verification to TEx, limiting their data exposure and simplifying customer interactions.
Business systems will need to interface with TEx
While businesses stand to benefit from TEx, they will need to align their systems with the digital infrastructure for seamless integration. This may lead to changes in data collection practices and enhanced security measures in data management.
Businesses may have less data on customers
The implementation of TEx could result in businesses holding less customer data, focusing solely on essential information for transactions. While it may pose challenges in demographic analysis, it ensures data minimization and compliance with privacy regulations.
What will it mean for personal data protection?
PII data could be safer in fewer locations
Centralizing data verification through TEx reduces the prevalence of PII across various business databases, enhancing data security for individuals. The system aims to mitigate the risk of breaches and streamline identity verification processes.
On potential risks of TEx
While TEx presents promising benefits, some experts caution against the potential attractiveness of the system to cybercriminals. Safeguarding the integrity of the Trust Exchange system will be critical to prevent data breaches and uphold user privacy.