In fact, the company is going beyond its own reach in an attempt to protect that data.
However, it creates unnecessary exposure towards the user by using their sensitive information for pass the authentication phase.
In the event of a security breach, all of the sensitive information is out into the open.
IBM is attempting to change that with Identity Mixer.
The authentication phase can only be passed if the user is able to provide the correct public key.
This in turn protects that users privacy to a very large extent.
source: www.techworm.net