The problem, he explained, is if someone gives their personal credentials to a bank or credit card issuer - or even a mobile phone company - those details are checked and then stored, perhaps for ever.
"Even if I close the account and move to other bank or mobile phone service provider, those details stay on record. There really needs to be some system that allows data to have a time limit attached to it, and, when that limit passes, the data is destroyed", he said.
Moving on to the subject of the IT security industry, Professor Schmidt said that his own observations, as well as those of his members, suggests that the bulk of the effects of the current recession have yet to be experienced in the IT industry.
"I've only heard of one person in IT security losing their job owing to cut-backs, and that was a special case", he said, adding that whilst budgets are being trimmed, IT security seems to be relatively immune.
There appears, he said, to be an understanding that IT security is a very necessary part of the IT equation and, because of this, whilst some IT security projects are being placed on hold, they are usually only being placed on a back burner until such times as the firm can afford to spend the money.
"That's a lot different to having a project cancelled, as is happening in other sectors of the IT industry", the ISF president said.
"The big question, however, seems to be - can we continue to spend the money on outsourcing of IT security that we have been doing?"
"My observations suggest yes, as vendors and service providers are now discounting their prices to meet client budgets."
Professor Schmidt went on to say that, as vendors and service providers cut their prices, many are actually seeing new customers coming on board who would previously been dissuaded by price.
Overall, he explained, this means that some IT security suppliers - though they are dealing with more customers at lower prices - are actually making as much, if not more, money than they would have done at previous prices.