New legislation aims to strengthen digital identity security

A new bipartisan bill introduced in the House seeks to place the Treasury Department at the center of a national effort to combat identity theft and fraud by strengthening digital identity infrastructure, according to FedScoop.

The Stop Identity Fraud and Identity Theft Act, from Reps. Pete Sessions (R-Texas) and Bill Foster (D-Ill.), would authorize the Treasury Secretary to establish a grant program for states to develop secure digital versions of driver's licenses and other IDs that align with NIST standards. The lawmakers cite alarming statistics, including over 353 million people affected by data breaches in 2023 and federal program losses estimated between $233 billion and $521 billion annually due largely to identity-related fraud. Sessions stated that "criminal organizations and hostile nation states are exploiting outdated identity systems," while Foster emphasized the need to "safeguard Americans' personal information."

The voluntary digital credentials would aim to protect privacy, guard against AI deepfakes, and ensure the integrity of Treasury-administered benefit programs. The bill reflects broader congressional focus on leveraging technology like AI and data analytics to detect fraud, complementing existing initiatives like the Do Not Pay system.