In a year of geopolitical tensions, competitive market recession, and economic uncertainty, there is no surprise why cybersecurity threats are fraught in digital industries. From the resurgence of SMS or email phishing to widespread impersonation, the severity of identity theft increased in 2022. Similarly, the vulnerability of businesses took several turns after fraudsters pilfered over $11.4 billion through account takeovers.
Identity verification services are going to take on a new urgency in 2023 due to the increasing cyberattacks. Hence, it is prime time for businesses to invest in digital ID check solutions and prepare for coming risks. With more innovations coming in 2023, this article highlights some of the most anticipated transformations in the IDV sphere.
Identity Verification Services Transformations for Businesses to Watch Out
The year 2022 highlighted various vulnerabilities of businesses to crimes, such as insufficient fraud control mechanisms. Industries have faced data security compromises, synthetic identity theft, Card-Not-Present (CNP) scam, and compliance challenges. While striving to fight these threats, complexities in customer onboarding arise. They further leave businesses with the need to integrate online global ID verification solutions.
The world of technology moves swiftly as it undergoes transformations more rapidly. In this process, identity verification is not left behind. Read on to learn about digital ID check technology trends that will reshape industries’ security, compliance, and fraud prevention controls.
The Growth in Fraud and Take Down of IDV Solutions
Criminals see economic uncertainty as their golden pass to exploit not only finance but every other industry. Therefore, cloud security, ransomware, and Internet of Things (IoT) fraud attacks will increase amid the cost-of-living crisis dramatically. Customers seeking online offers are unaware of the trap they might fall into. With advancements in Machine Learning (ML), deep fake attempts are also going to grow more complex.
The video uploaded to TikTok featuring Tom Cruise is a prominent example of a deep fake. It’s hard to tell whether the person in a clip is real or a fraudster due to advanced ML-led impersonation techniques. The use of Artificial Intelligence (AI) technology-powered identity verification solutions ensures that the digital transaction or interaction is not with a spoof or inanimate video.
The Use of Digital Identity will Forge Ahead
Digital ID checks are all set to make inexorable growth in 2023 by becoming a primary way to prove users’ identities. Furthermore, it will stay the top-preferred way to securely access banking, government, education, workplace, and health services. The use of digital wallets incorporated with identity verification services is soon to become the completely new normal for storing currencies. With real-time authentication, biometrics, and MFA, only legitimate owners will be able to use their money, reducing every risk of theft.
Data Privacy and Protection will take New Turns
The warning is stark as PII is known to almost everyone with permission to access personal systems such as computers, mobile phones, and others. Fraudsters use stolen passwords, usernames, names, addresses, and emails to impersonate legitimate users. With advanced ML tools at their disposal, this trend will compromise a huge number of customers in 2023.
The protection of customer information is of utmost important around 74% of the users rank their data privacy as one of the top concerns. Hence, self-authentication of ID enables consumers to manage their data reducing liability on enterprises. Digital identity verification will make this a more appealing approach for the business world in 2023.
Know Your Customer (KYC) Process will no longer be a Box-Ticking Practice
Working on silos will be out of trend in upcoming years as they pose a threat to client conversion, assistance, and experience. Enterprises will have to embrace multi-purpose identity verification solutions for optimizing their digital onboarding processes and staying put with customer demands. When it comes to identifying clients understanding the risks they possess and performing KYC will become more all-encompassing. Hence, ID verification will no longer be a simple box-ticking practice rather it will involve a series of AI-powered processes.
Cryptocurrencies Regulations will Continue to Evolve
The crypto verse saw a torrid end in 2022 following the collapse of FTX. Considering the vulnerability and volatility of this marketplace, ID verification regulatory framework is seen evolving. A thorough investigation of both beneficiary and collector will become more stringent liabilities. Similarly, clearer, as well as stable legal digital identity verification for finance standards will be in place by 2023.
Key Takeaways
As swift technological transformations emerge, fraudsters equally keep pace, making it challenging for identification service providers to detect their intentions. However, the advancements coming to digital ID checks will reduce the vulnerability of enterprises in 2023 to a greater extent. Online KYC solutions will bring different departments such as validation of identity, sanctions, compliance, and customer retention of the organizations together. Digital identity verification will also help crime sectors to identify perpetrators more efficiently.
