Using Claims-Based Tokens for Credit Claims
One
potential use of tokens may be to help prevent
identity theft by enabling consumers to ensure that their credit
information is provided to merchants and credit grantors only in
response to a legitimate request for a new credit accout. If a
consumer is applying for such an account
online, the merchant or credit grantor (now a relying party) could
invoke the consumer's selector or active client, which would allow the
consumer to approve the transmittal of verified credit claims from
a credit bureau. Upon high assurance authentication of the
consumer to the credit bureau, a secure token
transmitted would be transmitted to the credit grantor / relying party,
containing the
consumer's credit information.
One advantage of this use of claims-based tokens is that it would streamline and make more efficient the current methods available to consumers for preventing identity theft; namely fraud alerts and security freezes. The use of tokens in this way gives consumers a potentially better way to prevent their credit information from being made available to credit grantors when an identity thief is attempting to open a new account in the consumer's name.
One advantage of this use of claims-based tokens is that it would streamline and make more efficient the current methods available to consumers for preventing identity theft; namely fraud alerts and security freezes. The use of tokens in this way gives consumers a potentially better way to prevent their credit information from being made available to credit grantors when an identity thief is attempting to open a new account in the consumer's name.