The UK is leading the world ..
The UK is leading the world in demonstrating why this is a REALLY, REALLY bad idea - not deliberatly, of course. The root problem with all those scams, sorry, schemes is the government telling you "trust us". Well - I have yet to hear a good argument why..
I don't know if anyone had kept up with the flood, but I'm starting to get the impression that everyone is now dumping their data loss 'bad news' because it'll then be over in one go. "A good season to announce and bury bad news", to paraphrase a too honest marketing girl working for Labour.
Imagine losing a database with precise pointers at the metrics you need to change if you were to hack an identity. Ak, OK, so a retinal print is stored in this format, so to "update" the record we need to do x/y/z. Thanks for those CDs, they came in really handy..
You're all referring to the Minority Report as an early example - may I add a better (earlier) one? In "The Net" with Sandra Bullock they were already playing with identity theft and creative adjustments of someone's record. About the only two things that are NOT happing today are IP numbers (octets) above 255 and viruses that dissolve so cleanly. One because it's out of spec, the other because nobody bothers :-).
There is a very basic trust rule which is becoming more and more important these days: the only one you can be certain of is yourself. The rest is merely risk management.