Another proposal is out there on how to decrease the increasing volume of identity theft. BITS, a non-profit organization of financial institutions that focuses on business and technology issues has recommended a two-factor authentication as the solution.

Two-factor authentication combines standard username/password combination with a small digital device that generates randomly a code every 60 seconds. The website infrastructure would have the same "random" number engine on their end, so that they know at any time what number any user’s digital device shows. The user would supply the username, password, and the number supplied by the device to gain access to a secure site.

Problem is, how do you deploy such an infrastructure if you have little control over your customers, in many cases the institution does not ever have a physical contact with the user?

"It’s easy to apply two-factor authentication when you have employees
[or a government mandate]," said John Carlson, senior director of BITS,  "But it’s a highly different equation
when you deal with customers that can choose between different
financial institutions."

[Via eWeek -]

Recent survey on spyware’s impact:

A study by Bigfoot Interactive released
earlier this month revealed that 55 percent of online users said they
had been infected with spyware,

And that number does not include people who have spyware but do not know that they have it.

[Via IT Facts -]