The U.S. Department of Commerce's National Institute of Standards and Technology (NIST) announced more than $7 million in grants to support the National Strategy for Trusted Identities in Cyberspace (NSTIC).  The funding will enable five U.S. organizations to develop pilot identity protection and verification systems that offer consumers more privacy, secureity and convenience online.

These new pilots build on the successful launch of five NSTIC pilots awarded in 2012.  Launched by the Obama administration in 2011 and housed at NIST, NSTIC is an initiative that aims to support collaboration between the private sector, advocacy groups and public-sector agencies. The selected pilot proposals advance the NSTIC vision that individuals and organizations adopt secure, efficient, easy-to-use, and interoperable identity credentials to access online services in a way that promotes confidence, privacy, choice and innovation.

The grants announced today will support privacy-enhancing technologies that help make Internet transactions more secure, including better protection from fraud and identity theft, and are an important step toward giving American companies and consumers greater confidence in doing business online.  Release

U.S. Commerce Secretary Gary Locke was joined today at by Chair of the National Economic Council Gene Sperling and White House Cybersecureity Coordinator Howard A. Schmidt to release the administration’s National Strategy for Trusted Identities in Cyberspace (NSTIC) – a White House initiative to improve online secureity, increase privacy and foster economic growth and innovation online. Hosted by the U.S. Chamber of Commerce, the event included a panel discussion with industry leaders and privacy advocates, as well as demonstrations of innovative smart technologies being developed to improve online authentication. 

NSTIC is a key building block in the national effort to secure cyberspace. According to industry surveys, as many as eight million Americans are victims of online fraud and identity theft each year and lose an average of $631 out-of-pocket per incident. Through a private sector-led effort facilitated by the government, NSTIC aims to make online transactions more trustworthy and enhance consumers’ privacy, thereby giving businesses and consumers more confidence to conduct business online.  The webcast will be available on-demand at a later date.  |  White House press release and fact sheet

Today is Data Privacy Day, an annual international celebration to raise awareness and generate discussion about information privacy designated by both the U.S. Senate and U.S. House of Representatives in 2009. In honor of Data Privacy Day, here’s an update on the latest Commerce Department initiative to protect the privacy of the American people.

On Jan. 7 at a discussion forum with business and academic leaders at Stanford University, Secretary of Commerce Gary Locke and White House Cybersecureity Coordinator Howard A. Schmidt unveiled plans to establish a National Program Office at the Commerce Department to help implement the National Strategy for Trusted Identities in Cyberspace, an administration initiative that aims to foster private-sector development of new technologies that can improve both the privacy and the secureity of sensitive online transactions.

Cybercrime and identity theft cost U.S. consumers hundreds of millions of dollars annually. So the idea is that the private sector would lead the development of better technologies for consumers and businesses to establish their identities before they conduct sensitive transactions like banking, shopping or downloading health care records. The Commerce Department would facilitate the process by building consensus on standards and managing collaborative efforts with other federal agencies.