Digital identity was nominated by the Financial Services Inquiry as one area where it was not only possible that technology could be harnessed effectively through public-private sector collaboration, it was important that this was done. The rationale is that "participants" in Australia's financial system need to have confidence in peoples' identities, yet the current identity infrastructure is fragmented. It currently consists of a largely uncoordinated network of identity credentials, driven by different standards, policies and legislative requirements, with unavoidable extra costs from duplication of processes.The inquiry noted that, in 2011, Australians lost an estimated A$1.4 billion through personal fraud incidents. Each year, an estimated 4 to 5 per cent of Australians experience identity crime resulting in financial loss; identity theft and false identities are key enablers of superannuation fraud, and serious and organised crime.At the other end of the banking sector, anti-money laundering projects have resulted in an estimated $725 million in expenditure, according to the Australian Bankers' Association. This is three times as much as the next highest item, the US Foreign Account Tax Compliance Act.To overcome such online identity problems, the inquiry recommended developing a national strategy for a "federated-style model of trusted digital identities" in which public and private sector identity providers would compete to supply "trusted digital identities" to individuals and businesses.