Get All Access for $5/mo

The Future of Identity Verification Security breaches, centralisation vulnerabilities, and inefficiencies plague systems, leaving individuals and organisations vulnerable to exploitation

By Keshav Reddy

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Freepik

In a rapidly evolving digital landscape, the safety and security of online identities is at the forefront of our collective concerns. From the threat of deepfakes to the alarming rise in identity theft and digital scams, the need for robust identity verification technology has never been more pressing.

THE CURRENT LANDSCAPE

A study released by McAfee, underscores the pervasive nature of identity fraud and the alarming rise of deepfake scams. In India alone, over 75% respondents were exposed to deepfake content in the past year, with a staggering 38% falling victim to associated scams. These statistics are symptomatic of a broader trend: the vulnerability of traditional identity verification methods in the face of evolving digital threats.

Security breaches, centralisation vulnerabilities, and inefficiencies plague these systems, leaving individuals and organisations vulnerable to exploitation. Moreover, the proliferation of digital platforms and applications adds to the challenge of managing and verifying identities across different channels.

THE WAY FORWARD

To address these challenges, we must embrace innovative solutions that offer enhanced security, efficiency, and a better user experience. Some key trends are poised to shape the future of identity verification technology.

Universal Digital Identity Platform: A unified platform for digital identity verification could streamline processes and ensure a seamless user experience across various sectors. A high-privacy first and secure platform that allows platforms to be trusted by the customers in the light of the new DPDP Act.

Artificial Intelligence: Behavioural analytics led by AI could be used to analyse patterns in user behaviour (typing speed, mouse movements, etc.) to create a unique digital profile. This could help detect anomalies and potential fraud attempts by unauthorised users. AI-led adaptive authentication systems could dynamically adjust authentication methods based on risk assessment, enabling quicker intervention and minimising potential damage. For example, high-risk transactions trigger additional layers of verification like biometric authentication.

Biometric Authentication: Widespread adoption of biometric authentication methods is expected to play a larger role in identity verification across various industries. Biometrics, such as fingerprints, facial recognition, and voice recognition offer better accuracy and security compared to traditional methods.

Regulatory Compliance: Regulatory changes are also shaping the future of identity verification. Governments and regulatory bodies are increasingly implementing stricter compliance requirements to combat identity fraud and money laundering. The Financial Stability and Development Council highlights a shift towards implementing uniform Know Your Customer (KYC) standards to ease inter-usability of KYC records across the financial sector and simplify the digitisation of the process.

Decentralised Identity: Decentralised Identity is a digital identity management system where individuals have complete control over their personal information. It allows users to manage and share their identity data without relying on a central authority or a third-party service.

Starting a Business

He Started an 'Accidental' Business at 25 With Just $2,000 — Then Gave His Product to the Pope: 'Anyone Can Be an Entrepreneur'

Michael Aram, founder of the namesake luxury home and jewelry brand, learned the art of metalworking in India — and used it to launch a global brand.

Business News

Mark Cuban Warns About Fake Fundraisers on Social Media After Assassination Attempt: 'Makes Things Worse'

Mark Cuban warned his followers about online grifters who try to capitalize on tragedy.

Business News

Elon Musk Endorses Trump, Says He's Faced Two Recent Assassination Attempts: 'Dangerous Times Ahead'

Elon Musk endorsed former President Trump minutes after the failed assassination at a rally in Pennsylvania and says two attempts have been made on his life while living in Texas.