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Identity Management Systems (IDMS) aim to support development, productivity and security while lowering costs related to managing users and their identities, credentials and attributes. Users may desire many of the benefits that well-designed IDMS could potentially offer, such as increased privacy and security. However, users have demonstrated that they are unwilling to spend money or time on security enhancements. Privacy is a major concern to consumers in the online world. The current paper outlines the concept of privacy, the concern over the protection of privacy in the cyber realm, and discusses the role of IDMS in enhancing protection of user privacy. The conclusion of this paper outlines the implications and suggests further directions for future research in this area.