CNBC: Identity fraud cost Americans a total of about $56 billion last year, with about 49 million consumers falling victim.
It is crazy to me that you have to hand out your social security number and the answers to most of your security verification questions at places like the doctor’s office.
And then you have to give that information again at every doctor’s office you visit because their systems do not speak to each other, which is equally ridiculous, but more on that later.
Given the frequency that we give out this information, it is not surprising the extent of identity fraud in the US (which I am sure is a prevalent issue in the rest of the world as well).
Solution:
A blockchain database with encrypted personal identifiable information that can be shared with others by using a private key.
- Ability to only share the necessary parts of the personal information, such as the date of birth but not the social security number.
- Ability to limit the amount of time the information is available to the recipient using a smart contract, such as a 60-minute timer to reveal past medical history.
- Restricting access to the information to only the necessary people using a smart contract and private keys for authorized individuals, such as only allowing the doctor to access the information.
- Ability to prove some information is true without having to reveal the information using zero-knowledge proofs, such as proving you have a valid social security number without revealing the actual number.
Using a blockchain to share personal information will not only protect against fraud but can also improve efficiency, reduce cost, and limit the time needed to access information.