Real ID May Put Banks at Greater Risk of Data Breaches, Say Privacy Analysts

By Brian Orsak

Plans for a national identification system that would require personal information to be stored in state-controlled databases will boost bank costs associated with large-scale data breaches, according to privacy consultants and information policy analysts. The federal Real ID Act, passed in 2005, calls for states to voluntarily issue an identification card that would be required to enter federal buildings, board planes, and access nuclear facilities. Largely expected to be tied with state driver's licenses, the new ID is mandated to be rolled out between 2008 and 2013. The measure has been vigorously criticized. Eight states have passed legislation rejecting the...