The NSW Government has taken a major step forward in 'damage control' from stolen identity documents, introducing the Identity Protection and Recovery Bill into the NSW Parliament earlier this month.

The new legislation will establish a fraud check service, allowing government agencies and other accredited organisations to confirm whether identity document (ID) details have been compromised or stolen.  

The new Compromised Credential Register will send up a red flag when someone tries to use an ID document that has been stolen or compromised, in a similar way to how stolen number plates can be flagged by automatic plate recognition.

ScamWatch, which is run by the Australian Competition and Consumer Commission, reported Australians lost more than $2 billion to scams last year. More than 67,000 scams were reported in NSW alone. 

Under the Bill, ID Support NSW will operate as the core government provider of identity protection and recovery services. Last year, ID Support NSW helped more than 40,000 customers impacted by identity misuse and data compromises between 2023-4.  

The new legislation will also include setting up a secure Compromised Credential Register to provide a fraud check service for IDs such as NSW driver licences and photo cards. 

Professor of Cybersecurity at Monash University Nigel Phair, says the idea is wholistically great, but not a sliver bullet for the issue of identity fraud.  

"This isn't going to solve all the identity theft and online woes. It's just a piece of the arsenal, but it's a great idea," said Professor Phair.  

The e-Safety Commission is another port of call for advice and information on your digital security.

While the strategy is good, Professor Phair notes that education on the issue of identity fraud is the biggest factor in preventing people falling prey to online scams.  

 "Education is the key, but as we've seen over the last 20 years education hasn't been working. So the question is how do we better educate people when it comes to operating online and make that education really cut through?"  

ID Support currently educates the community on scams by hosting nearly 200 interactive events last year on identity, privacy and cyber security resilience.  

But Professor Phair main advice is for people "be wary of when and where you give your data."  

Minister for Customer Service and Digital Government Jihad Dib said the new laws would help safeguard NSW residents against cyber criminals.  

“By alerting people quickly and supporting them to secure their identity and replace compromised ID documents, NSW residents will be better protected from impersonation, scams and fraud. 

“The new Compromised Credential Register will enable these early notifications to both individuals and agencies, and will send up a red flag when someone tries to use an ID document that has been stolen or compromised."  

The NSW Government has committed $22.7 million over four years in funding to ID Support through the 2024-25 Budget.