New internet identity system announced

An industry coalition is set to unveil new standards for identity authentication on the internet.

The Liberty Alliance includes Sun Microsystems, Sony, American Express, MasterCard and Bank of America.

The aim is to make the task of remembering long lists of passwords a thing of the past.

The standard will allow web users to log into different sites instantly by making different authentication systems speak the same language.

That realm is currently dominated by Microsoft, whose Passport system runs on about 200 websites.

Eric Dean, of United Airlines, who heads the group's management board, says the new standard will help finally realise the huge promise of electronic commerce.

However, campaigners for privacy fear the creation of a single identification standard will make it easier for businesses to profile internet users for marketing purposes.

Chris Hoofnagle, legislative counsel for the Electronic Privacy Information Centre, says: "They want identification data to find new marketing avenues. What it means for the individual is more spam, more direct mail, more telemarketing."

He adds that a single internet ID would also place individual financial data at greater risk of disclosure. "It's like using the same key for your house and your car and your safe deposit box. Compromise that one key, and all the golden eggs are compromised."

The Liberty Alliance was first announced a year ago, and the announcement detailing precisely how its authentication system will work is expected next week.