IBM makes it possible to shop pseudonomously on the net

27 January 2007

Developed by researchers at IBM's laboratory in Zurich, the software, Identity Mixer, will let consumers make purchases on the net without disclosing personal information.

As consumers hand over personal details when downloading music or subscribing to online newsletters, they leave a data trail, that can be traced back to them, that reveals information about the size, frequency and source of their online purchases. Identity Mixer eliminates the trail by using artificial identity information, known as pseudonyms, to make online transactions anonymous.

With the software, a computer user can get an anonymous digital credential, or voucher, from a trusted third party, like a bank or government agency. A bank would supply a credential containing a credit card number and expiry date, which while shopping and transacting online the Identity Mixer digitally seals and transforms the credential so the user can send it to the online merchant.

Using sophisticated cryptographic algorithms, the software acts as a middleman, confirming bank authorisation for the purchase; merchants never see the real credit card numbers. Identity Mixer generates a new encrypted credential for each purchase.

Unlike other identity management systems that transmit parts of a user's true identity, systems using Identity Mixer will share only pseudonyms, so real identity information can never be intercepted or exposed.

"When people don't have to disclose their personal information on the web, the risk of identity theft is dramatically reduced," says John Clippinger, senior fellow at the Berkman Center for Internet and Society at Harvard Law School.