Are you frustrated by the sheer number of passwords you have to remember for online transactions? If you're like most people, you simply use the same ones over and over again, even though you know this is making you more vulnerable to theft and identity fraud. And the criminally minded are taking full advantage of our password fatigue to steal our personal information.

In fact, the problem of fraudulent and deceptive practices is becoming so why spread that many Internet privacy experts believe consumers are increasingly afraid to enter personal information online and may well lose confidence in ecommerce altogether. They believe a sea change in the way identities are stored, transmitted and verified online is essential if the growing problem of online fraud is to be thwarted.

This is a problem that Microsoft has been working hard to address and one that it hopes it has begun solving by including its new Cardspace system in its new Vista operating system.

The idea of Cardspace is that it is an "infocard" that enables web sites to verify a customer's identity without needing to either receive or retain any personal or financial information.

It's Microsoft's plan that these identity cards would enable a bank to act as a middleman in an online purchase. The bank would send the merchant payment confirmation without transmitting a credit card number.

Internet users would be able to decide how much information is included on their identity card and be able to decide who gets to see it.

However, if this concept is to become universally accepted, Microsoft is the first to realise that it must be completely transparent across all operating systems (Windows, Mac, Linux, etc.) and be available on any device whether PC, PDA, cellphone, etc. Because only if it does will merchants readily accept it.

Of course all this will take time to implement but, if it doesn't soon become a reality, the present increase in phishing and other fraudulent practices will only increase with the danger that ecommerce will decrease.