Andy Burnham is reported to have told BBC Radio 4’s Today program that the GBP35 the crime is costing each UK citizen every year is more than the projected cost of the proposed ID cards.

Mr Burnham also suggested that it is the very lack of such advanced identification methods that has encouraged the proliferation of identity fraud.

Critics of the ID card scheme attacked Mr Burnham, alleging that he was playing on people’s existing fears and was not giving due attention to fact that ID cards are just as likely to become instruments of identity fraud as existing forms of identity.

Internet-based ID theft remains a key battleground in the financial services and retail sectors, with measures such as Chip and PIN card payment less effective in cyberspace. IT security vendors are working on methods such as two-factor authentication as a means to bolster consumer security online.