Verifiable credential networks, liveness-centric biometric authentication, the integration of generative AI – in this blog post, Certn’s Head of Global Identity and founder of Trustmatic, Donal Greene, covers his picks for digital identity verification trends in 2024.
Throughout 2023, digital identity verification underwent a transformative shift across multiple industries triggered by advanced AI technologies. This also triggered an avalanche in identity fraud and other cybercrime. Identity verification (IDV) industry experts are expecting that this rise in identity fraud will lead to an increase in businesses adopting stronger biometric verification methods. According to a Juniper Research study, the number of digital identity verification checks will surpass 70 billion in 2024.
2024 Digital Identity Verification Trends
2024 promises to be another year of profound transformation in the IDV industry. The three predictions for digital identity verification trends in this article reflect a more refined perspective on digital identity verification garnered over the past year.
In an industry where change is the only constant, Donal’s insights and 2024 predictions are honed by experience. Let’s dive in!
Three Predictions for Digital Identity Verification Trends
Mobilizing Greater Futures Through Verifiable Credentials Networks
2024 marks the threshold of a monumental shift in IDV, driven by the emergence of verifiable credentials networks (VCNs). These networks represent a seismic leap in how individuals manage and share their digital identities, and the implications are far-reaching.
VCNs empower users with unparalleled control, privacy, and security over their verifiable credentials, from academic degrees to personal information, all securely stored in a self-managed digital wallet.
What’s truly revolutionary here is the ability to selectively share personal credentials with organizations and service providers, facilitating seamless access to services and opportunities while preserving data privacy. The potential applications span industries, from streamlining job applications to fortifying financial transactions and enhancing healthcare accessibility. VCNs are the linchpin of a more inclusive, efficient, and secure digital future.
The blog post, How Certn is Building the Future of Trust, covers Certn’s vision for verifiable credentials.
Rethinking Device-Based Authentication: A Liveness-Centric Biometric Approach
The winds of change are sweeping away the reliance on device-based authentication, making room for a more robust and dynamic liveness-centric biometric approach. This shift arises from the sobering realization that device-based authentication, while deterministic, falls short in guaranteeing the true identity of the user. You can read more about different types of identity verification and authentication in the blog post The Evolution of Identity Verification.
Live-Centric Biometric Verification
“Liveness-centric biometric verification” refers to a method of verifying a person’s identity using biometric data (such as facial recognition or fingerprint scans) while ensuring that the data being presented is from a live person rather than a spoofed or fake representation. It typically involves analyzing dynamic features such as facial movements, blinking, or other physiological indicators to confirm the authenticity of the biometric sample. This approach enhances the security and reliability of biometric authentication systems in various applications, including identity verification, access control, and digital transactions.
This technique aims to prevent fraud by detecting and verifying the “liveness” of the biometric data, ensuring that it is captured from a real, living person at the time of verification. There are two types of liveness-centric biometric authentication: active and passive. Active authentication requires you to blink, move your head, or smile to verify the “liveness” of your biometric data. On the other hand, passive authentication simply involves pointing the camera at your face without any further action required.
The entire IDV market is generally shifting away from active liveness detection because it creates a lot of friction – users are often asked to move their heads left, right, up, and down to verify their “liveness,” which, when combined with the ID verification step, makes it impossible to complete the full identity verification process in under 30 seconds. Speed is important in this process to prevent drop-off. Instead, vendors are moving toward more advanced passive authentication methods to detect presentation attacks (presentation attacks are often called “passive liveness”).
Recent security breaches serve as stark reminders of the vulnerability of device-based authentication, where strong device authentication alone couldn’t thwart identity fraud. In 2024, we’re going to witness a transition toward three-dimensional biometric systems that not only authenticate the device, but, crucially, bind this authentication to a living, breathing user. This technological leap plugs the gaps that traditional approaches have left exposed, fortifying our defenses against sophisticated identity fraud. It’s a pivotal advancement in our ongoing battle to ensure that the individual behind the device is undeniably who they claim to be.
The Integration of Generative AI in Combating Sophisticated Fraud Scheme
The integration of generative AI in combating sophisticated fraud schemes represents a significant advancement in security and risk management. Generative AI, particularly in fraud detection and prevention, leverages machine learning algorithms to analyze vast amounts of data, identify patterns, and detect anomalies that may indicate fraudulent activities. This technology can simulate and predict potential fraud scenarios based on historical data, enhancing proactive measures against emerging threats.
Generative AI, a double-edged sword in the realm of digital identity, is set to be harnessed with unprecedented efficacy by organizations to counteract the very fraud schemes it has, in part, given rise to.
The integration of generative AI empowers financial institutions, e-commerce platforms, and other sectors vulnerable to fraud to deploy preemptive measures, protect customer assets, and uphold trust and security in digital transactions.
Combating Fraud through IDV with Generative AI
Generative AI algorithms can learn from patterns in legitimate transactions and behaviours, flagging deviations that suggest fraudulent activities, such as account takeovers, identity theft, or financial fraud. By continuously adapting and learning from new data inputs, these systems improve their accuracy and effectiveness in real-time fraud detection, reducing false positives and minimizing the impact of fraudulent activities on businesses and individuals.
This technology is evolving into a formidable weapon in the fight against deepfakes and other advanced digital identity frauds. We’re entering uncharted territory where generative AI is a critical asset in the hands of security experts, offering a glimmer of hope in the ongoing battle between those who seek to protect and those who seek to exploit our digital identities.
Identity Verification Trends and The Future of IDV
In closing, 2024 isn’t just another year in the IDV industry, it’s a culmination of experience, foresight, and innovation. In 2024, the landscape of digital identity verification is poised for groundbreaking change.
This year will witness a seismic shift fueled by verifiable credentials networks (VCNs), liveness-centric biometric authentication, and the integration of generative AI. These advancements are not mere trends but transformative forces reshaping how individuals manage and protect their digital identities. With identity fraud on the rise, businesses are increasingly turning to robust biometric methods and AI-driven fraud detection to safeguard against sophisticated threats. The evolution towards three-dimensional biometric systems and proactive AI measures marks a decisive step in fortifying our defenses and ensuring the integrity of digital interactions.
At Trustmatic, and now at Certn, we’ve grown alongside this evolution in digital identity verification trends, and our commitment to pioneering solutions that not only secure identities but also empower individuals and businesses to embrace a future defined by trust, security, and seamless digital experiences.
Join me on this journey, where expertise meets insight, and together, we shape the future of digital identity. Interested in harnessing the power of AI for your ID verification process? Talk to an expert via our Certn ID service page.
