ID Verification Trends Businesses Need to Keep a Lookout for in 2023
Identity data is what lets customers cope with mission-critical activities like insurance payouts, bank account opening, availing medical advice, and benefits claims. Furthermore, personal information also helps businesses assist legitimate clients rather than becoming a victim of malicious intentions. As the online presence and digitization continue to grow, digital ID checks challenges also loom large.
The growing risk of identity theft, account takeovers, payment scams, medical fraud, and many other types surrounds every industry. Whilst they compromise customer security, ID burglary also exposes businesses to serious legal and market repercussions. Hence, industries must employ technologically evolving identity verification services to stay ahead of manipulation.
This article is a rundown of upcoming identity verification trends businesses need to keep a watch out for.
A Run Down of Upcoming Identity Verification Services Trends
What will the future of ID verification be like in 2023? Are government and law enforcers going to replace digital IDs with paper ones? Will industries only operate online? Is digital onboarding going to become the new norm of customer intake? These and many other questions surround businesses due to rapid technological transformations. With an increasing threat of ID fraud, industries need to keep a keen eye on what identity verification has in stock for upcoming years.
Read along to learn more about the digital ID check trends businesses will need to leverage in 2023.
An Increase in Amateur Fraud Risks is Certain
Quantum computing, Machine Learning (ML), and Artificial Intelligence (AI) that were once under the possession of tech-savants are now available to the general public. However, the downside is that fraudsters are equally exploiting the benefits of the emerging digital revolution. May it be deep fake, spoofing, ID fraud, document forgery, or other such risks, criminals are deploying technological innovations everywhere.
The trends in fraud are certain to hover over every industry from finance to gaming but transformations within the digital authentication of ID emerge as a solution. The advancements especially in terms of accuracy are going to make identity verification services more reliable. Hence, businesses can restrict the entry of criminals on a larger scale.
Complexities in IDV Process are Going to Increase So will the Friction
According to the Javelin Strategy & Research, identity fraud losses grew to $52 billion in 2022. Criminals most commonly target individual customers as they are relatively easier targets than businesses. However, in both cases the loss becomes huge. Therefore, gone are the days when a single ID identifier was enough to authenticate users. Businesses will now require additional identity verification checks to ensure they are not onboarding fraudsters.
The online global ID verification trends show that IDV processes will involve more steps during user authentication. However, friction is also going to increase but industries can cut it down by integrating AI-enabled digital ID checks. They will have to ensure that their IDV processes are coupled with Multi-Factor Authentication (MFA) whether biometric analysis through selfies or live call consent verification.
Behavioural/Biological Analysis Will be More Realistic for Biometrics-Related Fraud
Documents are not unique nor can they be made so. Governments use identifiers like signatures, watermarks, holograms, ink types, and stamps to authenticate ID evidence. However, with AI-enabled Photoshop or other similar software at their disposal, forging these traits is no more a tough task. Likewise, the deep fake is another threat massively taking over industries. Fraudsters extract facial features’ from victims’ profiles and create a counterfeit ID to bypass validation of identity.
Criminals also examine, study, and recreate behavioural patterns which makes identity verification more challenging. Hence, experts claim that the upcoming trends of digital ID checks will bring technological applications that are capable enough to identify sophisticated deep fake attempts.
Liveness Detection Continues to be a Crucial Component in IDV Processes
The liveness check trend is closely similar to biometric realism. Being a part of the latter, the former closely monitors users’ presence at the time of onboarding. Even if they try to camouflage, the AI-powered identity verification services will identify their efforts.
The future of digital ID checks holds that AI will reach its improved form. Hence, background analysis and behavioural examination is going to be more accurate.
Regulatory Landscape Will Continue to Evolve
The fraud risks do not seem to come down and so will the regulatory obligations heighten. Legal watchdogs are revamping regulations regarding the use of digital IDs, customer verification, due diligence, and risk assessment. Hence, penalties are going to increase with more strict regulatory scrutiny.
The trends in digital identity verification for finance and every other sector are sure to bring a marathon of transformation both in terms of progress and fraud. Where these drifts act as a scale with customer convenience at one end and security on the other, AI-powered digital ID check providers are offering robust IDV services to maintain the balance.