Why digital ID could lower identity fraud risk in conveyancing
Former NSW digital minister Victor Dominello explains why verifying identity, not copying documents, suits property transactions this Cyber Security Awareness Month.
Property transactions routinely require clients to hand over passports, driver licences and other identity documents, often as photocopies or email attachments, and every copy that leaves a client's control becomes a record that someone else must protect. During Cyber Security Awareness Month, the Honourable Victor Dominello, a former New South Wales Minister for Customer Service and Digital Government, has urged the legal and conveyancing professions to consider a model in which those documents no longer need to change hands.
Mr Dominello, who is now CEO of the Future Government Institute, made the case during an InfoTrack InFocus vodcast hosted by Jerome Boutelet, Head of Government Relations and Industry Affairs at InfoTrack.
What is digital ID and how does it differ from showing a licence?
Digital ID is a way of proving who you are once, through a trusted provider, and then confirming only the facts a transaction needs, without handing over the underlying documents. Mr Dominello described this as a shift from the sharing of data to the attestation of facts.
A venue needs to know only that a person is over 18, and a real estate agency needs to know only that a person is a resident of New South Wales, yet both have traditionally collected a licence or passport that discloses far more than the transaction requires.
Why fewer copied documents means lower fraud risk
Each copy that leaves a person's control adds to the volume of identity credentials that may later be exposed in a data breach, and Mr Dominello said that fewer circulating credentials means a smaller digital footprint and a lower risk of identity fraud. "In the past, people would say data is oil. Well, I say data is asbestos," he said, warning that it causes lasting damage when it is not handled with care.
He estimated that a copy of an older driver licence could probably be bought on the dark web for about $20 and said that most companies are not even aware when a breach has occurred.
Property redirection scams and the case for linking identity and payment
Mr Boutelet noted that conveyancing has been a significant target for identity fraud, settlement scams and property redirection payments, and that deposit and bank details are still frequently exchanged by email and text message. Mr Dominello said that with the benefit of hindsight the New South Wales government should have built identity and payment together rather than adding payment afterwards.
"I think once you lock it into a truly integrated identity system, it becomes far more secure," he said.
Deepfakes and artificial intelligence raise the stakes
Mr Dominello said the deepfakes of only a couple of years ago now look crude by comparison with current examples, and that telling a genuine person from a synthetic one on screen has become almost impossible by eye. His response is layered authentication at the point of entry, which can raise red flags that a paper copy never could. "Paper is just paper," he said.
He also called for governments to plan for the identity of AI agents, so that it is clear who a software agent belongs to and what it is authorised to do.
A profession that has already led major reform
Mr Dominello said e-conveyancing was one of the best transformations he has seen, progressing from paper to a point where certificates of title no longer exist. He acknowledged that digital ID is another step for practitioners but said it is completed once and the efficiencies then carry through every later transaction. "I think this sector would embrace it very quickly," he said.
Practical steps for Cyber Security Awareness Month
The conversation pointed to several considerations for legal and conveyancing practices.
- Collect only the identity information that a transaction genuinely requires.
- Treat copies of passports and licences, whether on paper, in email or in cloud storage, as high-risk records.
- Avoid exchanging deposit and bank details by email or text message wherever a verified alternative exists.
- Rely on layered verification, rather than a single document or visual check, as deepfakes become more convincing.
The full InFocus conversation with Victor Dominello can be viewed here.
About InfoTrack
InfoTrack integrates workflow automation, regulatory compliance, AI-driven intelligence, and Australia’s most trusted data sources into one single, premium platform. Designed with compliance at its core, the platform enables law firms, conveyancers, real estate professionals, and financial institutions to manage governance, risk, client due diligence, and reporting efficiently. With intelligent workflows, built-in safeguards, and adaptable processes, InfoTrack empowers teams to focus on business objectives while remaining fully aligned with evolving regulatory requirements and delivering informed, reliable outcomes for clients.
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