Digital identification systems,integrated with civil registration, can play atransformational role across many development areas, such asfinancial inclusion, expanding access to services and socialsafety nets, and effective humanitarian response. But whilethe opportunity is great, so are the risks. One set of risksresults from collecting, using, and managing personal data,which creates serious privacy challenges. Risks alsoinclude: (1) Incorrect or inaccurate data collection,leading to mistaken identity or unjust treatment; (2) Datacollected for one purpose being used for another purposewithout the user’s consent; and (3) Unauthorized orinappropriate transfer of data between government agencies,governments, and even with third non-governmental parties.The importance of data privacy in building digital IDsystems is highlighted in the Principles on Identificationdeveloped by the World Bank in 2017. These principles havebeen signed onto by more than 20 international organizationsand development partners as being fundamental to maximizingthe benefits of identification systems for sustainable development.