The most effective security procedures are those users: naturally comply with & minimally burden users. Most Americans have some form of government ID, such as a State ID or driver's license; these ID's (or credential) are normally nearby or secured somewhere by the individual. I suggest working with State/Territorial/DC Motor Vehicle Authorities to enhance the credential with a chip similar to those used in credit cards or military Common Access Cards (CAC).
Chip-enabled credit cards are more effective in reducing fraudulent purchases & the military has about 15 years experience with the CAC. The military uses the CAC to identify military personnel, but it's also used by military personnel to digitally sign documents, login to DoD information systems, & gain access to sensitive areas. Most Americans consider the DoD & the various State Motor Vehicle Authorities as highly capable in verifying an individual's identity. This is proven by the fact that a military or state ID is considered proof of identification by most public & private organizations, & people.
A chip-enhanced State ID is more tamper/forge resistant that the current credential available. It can also be used to digitally sign documents online, thereby encouraging online business transactions. The tech-savy consumer can use their ID to secure their personal computers with readily available card readers, & government agencies that deal with the public can authenticate individuals when an chip-enhanced ID is slipped into a card reader.
Several countries throughout the globe provide their citizens with chip-enhanced ID's such as: India, Turkey, & the United Kingdom. The UK, in particular, is working on authenticating its citizens through the ID at the websites of several of its more public agencies.
We've had this technology for over a decade. It well proven & should not burden the average American any since most already have the credentials necessary. A chip-enhanced ID will cut down on identity theft & online fraud, while allowing government agencies with a very public facing mission a reliable means of authenticating individuals.