Identity verification and management trends

Issue 8 2023 Information Security

Ofer Friedman and Mark Brady of AU10TIX, a global provider of identity verification and management solutions and services, offered SMART Security Solutions some interesting insights into what we can expect from identity fraudsters and the industry next year, ranging from criminal exploitation of AI and digital IDs to multi-layer fraud protection and the need for more control over personal information sharing.


Mark Brady.

Digital IDs and fraud

Ofer Friedman: Chief Business Development Officer, AU10TIX: We will see the beginning of fake identity whitewashing. As consumers migrate to digital IDs, they will have to undergo a verification process. That is the opportunity that criminals will use to create identities that will not be checked later because they are already digital. So, they will whitewash fake identities, convert them into digital IDs, and then be exempt from ID verification processes from then on.

Mark Brady: VP of Emerging Product, AU10TIX: As a community, we expect more focus on the interoperability of different digital identities. There are many different regional or professional standards, and we need to figure out how they can coexist and be accepted universally.


Ofer Friedman.

Digital wallets and fraud

Ofer Friedman: In 2024, we will see the first attempts to break into digital wallets. We have already heard talk about fraudsters either breaking into mobiles to change them or creating a new type of fake - the faking of QR codes that can be used to get data out of the wallet.

Mark Brady: The identity verification industry will continue working to solve the business economics for digital identities. In the new world of digital IDs and wallets, the IDV (identity verification) provider’s role will change. More experimentation will come with business models.

Artificial intelligence and fraud

Ofer Friedman: 2024 will be the year of the inverse parabola of fraudster AI adoption. Most identity fraudsters will not be using AI so that it will be the opposite of the typical bell curve. Instead, it will be effectively adopted primarily by, on one end, amateurs using the free or very inexpensive applications available, and on the other end, sophisticated criminal organisations using professional tools and injection to commit large-scale identity fraud.

Mark Brady: Two-layered identity fraud protection will gain momentum as the new standard because of its ability to detect professional-level fraud. Current solutions only look at one layer (traffic level), and the steady increase in global fraud this year clearly indicates that professionals have figured out a workaround, which is putting pressure on regulators to make a change.

Personal identity information control

Mark Brady: Control will be a major theme in 2024. In the new world of digital credentials, people will have more control over what they are comfortable sharing. For example, if you are online gaming or at a bar, do they really need to know your date of birth or just that you are of age?


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