In 2020, 75% of large companies in the UK reported a data breach in the last 12 months. As a direct consequence of this, identity fraud is rising, buoyed by the sheer volume of personal information out there. Digital identities could actually be a way of withholding unnecessary data and protecting ourselves from fraud, not opening ourselves up to it. Mastercard recently partnered with Deakin University and Australia Post to test out a digital ID solution enabling students to register for their exams digitally. The UK government recognizes this as a priority, recently publishing a draft framework outlining its future governance of digital identities.
Source: https://www.helpnetsecurity.com/2021/03/15/digital-identity-adoption/