UK banks have quashed speculation that that they have been in
discussions with the Government over using microchips in debit
"chip" cards as a cost-effective basis for a future national
identity card.
Their denial came ahead of a controversial government consultation
paper on a possible national "entitlement card", which was expected
this week.
On Monday reports claimed that the Government had been in
discussions with high street banks about the possibility of a joint
project to issue ID cards, in a bid to limit the cost of the
project. A national ID card scheme could cost more than £1bn to
develop and roll out, according to industry experts.
However, high street banks this week denied that they had been in
discussions with the Government over a possible ID card scheme that
would guarantee access to public services and help to reduce
benefit fraud.
A spokesman for payment clearing association Apacs, whose members
include the leading UK banks and building societies, said, "This is
not something we are looking for at the moment."
Although it would be possible to store personal information on bank
debit cards, many of which now have an embedded microchip, banks
are focused on another major technology overhaul - a £1.1bn
programme to reduce fraud by authorising transactions with a
customer Pin code rather than by signing a receipt.
The government consultation paper on a national ID card will look
at the cost and technical options for rolling out a national ID
card, which is likely to be smartcard-based.
The Home Office is due to issue a smartcard ID card for asylum
seekers by the autumn. Computer Weekly revealed last year that a
Home Office agency had completed a feasibility study into a
smartcard passport that would act as a de facto voluntary ID card.
The card would be likely to include biometric data, such as
fingerprints or retinal scans.
However, concerns have been raised over the security of
smartcards.
Earlier this year scientists revealed details of a low-cost attack
that could allow criminals to read and copy confidential data from
smartcards using a £20 camera flash and a laboratory microscope.
Previous attempts to roll out a nationwide smartcard system have
run into severe problems. A joint project between the Post Office,
the Benefits Agency and ICL to automate the payment of social
security benefits was abandoned after four years, at an estimated
to cost the taxpayer £1bn.