Tough new laws aimed at clamping down on identity fraud are being drafted by the NSW government.

Almost half a million Australians lost a combined $997 million to personal identity fraud in the last year, according to the Australian Bureau of Statistics (ABS). The ABS attributed the crime wave to the rapid expansion of internet technology, and electronic data sharing and storage.

NSW Attorney-General John Hatzistergos said proposed new laws would make it an offence to trade any information that identifies a person, such as their name or address, driver licence, PIN or password, for the purpose of committing a secondary offence.

"Criminals who once forged cheques are now using skimming devices and digital voice technology to steal people's banking details and empty their accounts," Hatzistergos said in a statement on Saturday. Proposed laws aimed at clamping down on such offences will be put out for public consultation until late August.

Under such laws, fraud and forgery offences will be simplified, enabling the maximum penalty for serious fraud to be doubled to 10 years in prison. The government intends on introducing them to Parliament in the spring session.