An automatic control and management method for identification by using an identity equipment is proposed. The method includes using a login system to generate an identity certificate code; using a password to encode the identity certificate code and a unique random variable to generate an identity value; and generating an on-line connection verification data by using the identity certificate code and then storing the same into the login system. The process for logging in the login system includes using a portable identity equipment and inputting a password for identification so as to read out the encoded data. If disconnection occurs the login system automatically logs out to protect the confidential data. Thus, the identity equipment used in the present invention can be easily carried away.