ID's

[Pihe]

In my oppinion both the IFF and the ID are a manifestation of the signal the ship has which owns them.
You have to use somekinda signal to identify you, unless that you'll be recognised as "unknown" and will be fired on in most cases.
The difference between IFF and ID is if you get a weak signal you cant be exactly sure about the person carrying it. But if you take a closer look (check his ID) you should recognize the signal's nature and the reputation of the ship.
Like mentioned above if you encounter a smuggler ID you should suspect that it is a smuggler vessel.
Still like in real life unless he commits an unlawful act you shouldn't really do anything against him. Ofcourse when he has a bounty on his had thats a different case.