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Edition: U.S. Article Comments (1) Slideshow Technology Sprint CEO blasts AT&T/T-Mobile mega-deal Groupon may be worth up to $20 billion: source Cost surge under new Google CEO unnerves Street U.S. prods companies to develop secure, easy-use ID RIM's email-less PlayBook gets tough reviews Video game developers group slams Amazon pricing MeeGo sees interest from others after Nokia shift Special report: China has cyberspy edge Video: Critics pan the Blackberry PlayBook Follow Reuters Facebook Twitter RSS YouTube Read Actor Nicolas Cage arrested in New Orleans 2:42pm EDT Internet gambling sites owners charged with fraud 15 Apr 2011 Ohio man kills wife and three children, then self 1:54pm EDT Mom given 10 years for playing on Facebook as baby drowned 15 Apr 2011 Tornadoes, storms kill at least 17 in South 4:26pm EDT Discussed 226 China tells U.S. to quit as human rights judge 81 White House warns on debt limit, says Obama regrets vote 81 Obama to lay out deficit plan with focus on tax, spending Watched South Korean "super gun" packs hi-tech killing power Mon, Feb 14 2011 Cupless bra combats cleavage crinkle Fri, Apr 15 2011 Economic leaders seek balance Fri, Apr 15 2011 U.S. prods companies to develop secure, easy-use ID Tweet Share this WASHINGTON (Reuters) - The Obama administration urged the private sector on Friday to develop methods that consumers can use instead of passwords to identify themselves online and, in some cases, in brick and mortar stores. "The Internet has... Email Print Factbox Factbox: Environment, high-speed rail hit in budget deal Tue, Apr 12 2011 Related News Special report: In cyberspy vs. cyberspy, China has the edge Thu, Apr 14 2011 Retail sales up modestly; growth forecasts pared Wed, Apr 13 2011 U.S. shuts down massive cyber theft ring Wed, Apr 13 2011 John McCain, John Kerry introduce contentious U.S. privacy bill Tue, Apr 12 2011 Analysis & Opinion FTC asks Congress for identity theft protections Tech wrap:Yahoo’s CEO-in-waiting? Related Topics Politics » Technology » Media » Stocks 1 / 2 Artists and designers work on arrangements for clothing items to be sold online at an eBay Fashion photo shoot in San Francisco, California November 4, 2010. Credit: Reuters/Robert Galbraith WASHINGTON | Fri Apr 15, 2011 3:55pm EDT WASHINGTON (Reuters) - The Obama administration urged the private sector on Friday to develop methods that consumers can use instead of passwords to identify themselves online and, in some cases, in brick and mortar stores. "The Internet has transformed how we communicate and do business," said President Barack Obama in a statement accompanying release of a national strategy to safeguard identity on the Internet. "But it has also led to new challenges, like online fraud and identity theft, that harm consumers and cost billions of dollars each year," the president said. As part of the strategy, the Commerce Department is asking the private sector to create a system or systems that can identify Internet users in a way that safeguards their privacy, is secure, is interoperable and is cost-effective. Participation would be voluntary. "Consumers who want to participate will be able to obtain a single credential -- such as a unique piece of software on a smart phone, a smart card, or a token that generates a one-time digital password," the Commerce Department said in a statement. Millions of people are victims each year of identity theft, which costs victims an average of $631 and 130 hours to recover from, the Commerce Department said. Earlier this month, a long list of hotels, financial institutions, retailers and others revealed that customer names and email addresses had been stolen by hackers, giving the criminals useful information to be used in identity theft. The strategy is a way to eliminate passwords -- which are unwieldy for users and ineffective in many cases -- to have them go the way of the dodo. But the Commerce Department is also keenly aware that any attempt by the federal government to create a national identity card would be extremely controversial. Companies at a Chamber of Commerce event to kick off the effort included Google, Symantec, eBay subsidiary PayPal, Microsoft and Northrop Grumman Corp. (Reporting by Diane Bartz; Editing by Steve Orlofsky) Politics Technology Media Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) BBJJ wrote: Smart cards and tokens can be stolen just as easily as other forms of identification. They simply provide a false sense of security. I have, or rather had a smart card issued by my bank. It didn’t provide any additional security beyond what my 20 character password did. I change passwords either once a week or after each use, whichever is longer. I’d rather remain anonymous by using complex passwords, single use email addresses, proxy servers, prepaid gift cards and store front mail drops for online transactions. Apr 15, 2011 4:32pm EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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