Driver licences with additional security measures to be issued in Victoria after Optus data breach

Additional security measures will feature on the roughly one million new licences which will be issued to Victorians following the Optus data breach.

VicRoads said victims would be issued new cards with an additional security number on the back, which will operate in a similar way security codes are used on credit and debit cards.

More than 942,000 Victorian licence holders had their details compromised in the Optus data breach, a Department of Transport spokesperson said.

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"The Victorian government is fast-tracking protections for licence holders in response to the Optus data breach through the introduction of two-step verification and the free replacement of nearly one million licences," the spokesperson said.

"The Optus data breach is the biggest in Australia's history and Victorian licence holders have been impacted more than any other state."

About 342,000 Victorians flagged as directly affected by the breach will receive their new cards by the end of the year.

This group will also have their licence flagged on the Victorian Licensing Registry and also move to the new two-step verification approach to protect their identity.

The new process will require both the new card number and also the original licence number for identity confirmation to prove their identity for services such as opening bank accounts, loan applications, phone contracts and real estate transactions.

The second card number would eventually become a feature of all new and replacement Victorian driver's licences.

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The spokesperson said in the coming weeks, the redesigned licences will begin to be re-issued to affected people for free.

These individuals will receive their new licence cards before the end of the year.

"The Victorian Government will continue to seek reimbursement of costs from Optus for the replacement of the nearly one million licences of Victorians impacted by the largest data breach in Australian history," the spokesperson said.