The Slippery Slope of Mandatory Digital IDs: A Warning for the Five Eyes Nations– Part 3: Canada

By George News Staff

In this four-part series, we dissect the growing push toward mandatory digital identification systems across the Five Eyes alliance nations: the United Kingdom, Canada, Australia, and New Zealand.

Each installment spotlights one country, exposing the risks of handing over personal data to centralized databases under the guise of convenience and security.

From privacy erosion to outright surveillance, these initiatives threaten individual freedoms in ways that could reshape society. We started with New Zealand’s unacknowledged breaches and moved to Australia’s expanding vulnerabilities; now we examine Canada, where federal digital efforts are advancing amid mounting cybersecurity failures.

Canada avoids a single national physical ID card, relying on provincial and territorial documents for everyday verification. But the federal government is building a robust digital ecosystem. GC Sign In provides a unified login for over 270 online services, from tax filings to benefits claims, using bank-like verification. GC Issue and Verify lets departments issue digital credentials like work permits or licenses, stored on mobiles with blockchain security. The Digital ID & Authentication Council of Canada, or DIACC, framework guides standards for privacy and security in online proofs, supporting government, banking, and economic access without a mandatory ID.

Physical alternatives remain key: provincial health cards like Ontario’s OHIP or British Columbia’s Services Card for medical access, the Social Insurance Number card for taxes and jobs, provincial driver’s licenses for broad ID, and Permanent Resident Cards for immigrants. These scattered systems function without forcing digital adoption. Yet the promise of seamless online interactions hides growing perils as adoption spreads.

The threats hit home with a recent breach. In August 2025, Interac’s 2Keys, the multi-factor authentication provider for Canadian government services, suffered a data theft during a routine software update.

Hackers stole over 880,000 phone numbers and 85,000 email addresses tied to federal accounts for the Canada Revenue Agency, Employment and Social Development Canada, and Canada Border Services Agency. These details were used for MFA when accessing services, directly linking to digital verification processes. While no deeper personal data was taken and no account compromises detected, victims have faced spam and scam attempts, raising fears of phishing and identity fraud.

The incident, under investigation by officials and 2Keys, exposes flaws in authentication systems meant to secure digital IDs.

If digital IDs become compulsory, as federal pushes indicate, the fallout could be catastrophic. Canada’s systems already interconnect government, financial, and health data, creating prime targets for hackers. One breach in a centralized setup could ripple across millions, enabling widespread fraud or surveillance. Past incidents, like the 2019 LifeLabs health data ransomware affecting 15 million, show the scale of risk. With Chinese hackers breaching government networks in recent years, external threats compound the issue. Vulnerable populations, including those without reliable tech, face barriers, while “voluntary” tools edge toward necessity. Oversight lags, as seen in delayed responses to breaches, leaving citizens at mercy of flawed tech.

Canada’s troubles mirror those in New Zealand and Australia, underscoring weak safeguards in digital shifts. In Part 4, we’ll conclude with the United Kingdom, where new mandates loom largest. Stay alert: security sold as progress often masks control

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Read Part 1 here: