According to an Australian senator concerned about the federal government’s proposed national digital ID scheme, there are potential risks in centralizing personal data. Senator Matt Canavan expressed his apprehensions to a Senate Committee hearing about the potential centralization of personal data, particularly biometric information that once leaked, cannot be changed. He questioned the need for a scheme that incentivizes data centralization, suggesting that it would be more prudent to try and decentralize this type of information.
Senator Canavan directed his concerns to Jordan Newnham, the executive director of corporate affairs at CyberCX, which backs the federal government’s digital ID scheme. CyberCX, an organization that provides cyber security and cloud services to the government and private sectors, believes that the federated architecture which is proposed as part of the digital ID scheme is sufficient to ensure the security of the data, thereby minimizing the risk of creating a ‘honeypot of data’.
Under the national digital ID scheme, Australians would be able to verify their identity through a digital ID system without needing to show “points” of identity every time it is needed by businesses, government agencies, and other organizations. Instead, Australians would receive a one-time PIN from a digital ID app, serving as a one-stop-shop for verification across several services and platforms.
There were also concerns raised about data centralization to the Department of Finance by the chair of the Committee, Senator Jess Walsh. However, the government has stated that there is no centralization of all digital ID information, with specific restrictions in place to limit the sharing and re-purposing of sensitive personal data. Despite these reassurances, Digital Rights Watch has warned against personal data being used for surveillance purposes, highlighting that the digital ID system must remain genuinely voluntary for Australians.