Phising Scams have risen , hence causing a major crisis in the online transaction volume. Everyday we do keep hearing new type of ad wares/spy wares/virus which seem to be stealing the identity information of the user and thus creating a havoc with his account.  In such cases , Digital Identity comes to the rescue if properly implemented. Digital identities, which provide two measures of authentication, could help improve Internet security, as well as having various other uses, such as digital passports, the experts said. Dual authentication often involves something a user knows or possesses, such as a smart card, and something that he or she is, which can be represented by biometric information

Also the concept of Federated Identity (Authentication done by one body and then trusted by another )has been much touted by a lot of people, however the implementation is strewn with umpteen obstacles.Identity theft problem needs to be attacked swiftly before online transactions take a hit.

For more info read  :Digital IDs to boost Net security