The events of September 11 brought new emphasis to two well-known and contradictory facts: The state-issued driver's license is the most used form of identification in the United States, and the system for issuing driver's licenses is deeply flawed. Four of the 5 terrorists who crashed the plane into the Pentagon boarded their flights using false IDs obtained in Virginia. But the ease with which criminals can obtain false driver's licenses has pervasive impacts far beyond terrorism: identity theft, underage drinking and driving, government benefits fraud, insurance fraud by unsafe drivers, and so on.
There are a number of proposals on the table or in various stages of implementation that will help fix the driver's license system. The homeland security strategy offered by the White House calls for harmonization of the procedures and requirements for issuing driver's licenses. An ongoing project spearheaded by the American Association of Motor Vehicle Administrators (AAMVA) will link together the databases of all state motor vehicle agencies to prevent criminals from holding more than one license at a time. Several states are experimenting with biometric identifiers, such as encoded thumbprints, to add extra security to the driver's license. As long as widespread agreement exists that the driver's license system must be modernized, it makes sense to get the best "bang" for the taxpayer's dollar by using smart cards -- tiny encrypted computer chips embedded in cards that can securely verify identity as well as hold a number of other applications.
Because each smart card has its own miniature computer encrypting the data, it is impossible for criminals to "crack the code" and compromise the entire system. Smart cards can also enhance privacy by putting sensitive data behind secure firewalls and by placing biometric identifiers into a "database of one" that is carried and controlled by the license holder rather than a government agency. More importantly, with inexpensive readers attached to personal computers, license holders can verify their identity in online transactions and can add new applications -- such as digital cash, credit cards, or electronic keys to their workplace networks -- that will link to their identity and biometric features and make it impossible for criminals to steal them.
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