Internet privacy has become a major concern with the advent of Internet. This paper tries to understand privacy, trust and identity as perceived by individuals online. I would like to explore by firstly looking at the implication of invasion of privacy on trust and identity through confidence in carrying out transactions, understanding of veracity of information sources and attitudes to providing personal information. Secondly I would try to understand the social norms and the dynamic nature of online trust and the trade-offs between privacy and trust and the construction of identity. The paper shows how privacy, trust and identity are very closely interlinked. Thus invasion of privacy would have grave consequences on one’s trust and identity.