Australia plans 'Trust Exchange' ID system to improve identity verification efficiency

Using QR codes and tap-to-pay methods, the ID system will securely communicate information from MyGov accounts

The Australian government is planning to introduce a new digital ID system to improve the efficiency of identity verification for various services, including checking into hotels and submitting job applications.

The system will use QR codes and tap-to-pay methods to securely transmit information from MyGov accounts, according to a report by the ABC.

Set to launch as a pilot next year, the optional system will allow users to seamlessly check into hotels and apply for jobs without having to worry about their data being leaked.

For instance, under the proposed "TEx" system, a person could check into a hotel by simply scanning a QR code, which would then safely transmit their passport details via a unified database.

Similarly, a QR code at a pub could verify a person's age without revealing the actual details.

In other cases, users will receive a digital token — also known as a "digital thumbs up" — that confirms their credentials while keeping their sensitive data private.

"It can all be done via the digital wallet on your phone – the TEx technology does the rest," Minister for Government Services Bill Shorten said at the National Press Club on Tuesday, according to The Conversation. "It can all be done via the digital wallet on your phone – the TEx technology does the rest."

"With TEx, instead of handing over those documents and having them taken to the back office to be photocopied, you will scan a QR code on the front desk – or use technology similar to tap-to-pay machine – which digitally shakes hands with your MyGov wallet," he added.

"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 you shared it," he said

"It could be date of birth, address, citizenship or visa status, or qualifications, occupational licences or working with children check. You control what details are exchanged."

However, cybersecurity experts have expressed concerns that centralizing such a large amount of sensitive information could make it a "honey pot" for cybercriminals.

The system could also lead to the government collecting more information than is necessary, according to the report.

"The more data you collect, the more risk you're introducing into the system. It's a risky project," Richard Buckland, a cybersecurity professor at the University of New South Wales, told The Conversation.

"Once we collect that data, sure, if we've got a system that protects it, that's great, but I've never seen a perfect system."

Nevertheless, the government has stated that the information will not be stored in a single database, as it is aiming to create a decentralized model, according to the ABC.