The true cost of identity fraud

Identity fraud has been a big problem in Brazil – in part because the current documents are not centralized.

Right now, I could have an identification number in each of the 27 estados [states] – each one has its own database and they are not connected,” explains Coelho. “With RIC, that’s not the case.

Stopping identity fraud can have an enormous financial impact. The Brazilian government currently wastes an estimated 15 billion reais (US$8.5 billion) every year on social services that were acquired by false application.

Eliminating things like false driver’s licenses would also have a financial trickledown effect. The switch to eDriver licenses in a number of states in Mexico, for example, has reduced traffic accidents by 40%. When you consider that road accidents have cost Brazil 28 billion reais (US$16 billion) in 2009, a 40% reduction would mean that more than 10 billion reais (US$5.7 billion) could be used for something more productive.

But even without a national ID card, Brazil is using digital signatures and biometric data in novel ways to enhance the efficiency of government services. For example, many courts in the Brazilian judicial system operate entirely with electronically signed documents. No longer do judges and attorneys have to go to the courthouse to file legal papers in person; they do everything electronically.

Mauricio Coelho says that the courts that have adopted this system operate much more efficiently. In fact, the experiment has been so successful that the entire Brazilian judicial system is expected to adopt this electronic document system in the next three to five years. “In the justice system, we have data showing that a process that once took 800 days now only takes 40 days,” he says. “In financial terms, we have seen cost reductions of something like 60%. It’s really amazing.

In fact, any legal document can be signed digitally if it uses PKI technology. Government contractors also use digital certificates to make bids on jobs and send their invoices.
 

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See also...

Case study: eDriver Licenses for Monterrey drivers


Signature, fingerprint, portrait, payment, fine check, identity check and eID card delivery on the spot. Read more...

 

USA: The Case for a National Digital Identity Credential


 

The US is in the midst of an identity crisis. Evidence of the problem is apparent in all sectors of our government and economy. Read more...