The Future of Digital Identities is Now
- Date:February 28, 2023
- Author(s):
- Suzanne Sando
- Report Details: 14 pages, 3 graphics
- Research Topic(s):
- Fraud & Security
- Fraud Management
- PAID CONTENT
Overview
Consumers are becoming increasingly more comfortable with the idea of digital identities, particularly in the form of government-issued IDs like mobile driver’s licenses. But a digital ID has the potential to be much more than just a mobile driver’s license—not least in providing defense against identity fraud. Many international economies are already leveraging national digital identity programs to offer consumers secure methods of verifying their identities when applying for and accessing government benefits, financial accounts, and signing legal documents.
Digital IDs offer convenience and security that, if implemented correctly, can reduce threats such as new account fraud, account takeover fraud, and synthetic identity fraud and also lower application abandonment rates by removing unnecessary friction from the account-opening workflow. But financial institutions and ID-proofing vendors need to be prepared to alleviate privacy concerns from consumers who may be reluctant to adopt more advanced digital technology.
Key questions discussed in this report:
- What is the current state of digital ID implementation and acceptance in the U.S.?
- How can FIs and other financial services providers anticipate consumers’ privacy concerns to maximize the benefits of digital IDs?
- What is the right balance among privacy, convenience, and security to make digital IDs beneficial to everyone but cybercriminals?
Companies Mentioned:
American Association of Motor Vehicle Administrators (AAMVA), Apple, Facebook, TSA, Zoom
Interested In This Report
Related content
Wealth Management Fraud: An Easy Target for Scams
Traditional identity fraud and identity fraud scams are equal-opportunity crimes, in that anyone with a digital footprint is a potential target. But as affluence rises, so does con...
P2P Scams and Fraud: Addressing Financial Institutions’ Precarious Position
Peer-to-peer (P2P) payments are essential in a world where cash is less commonly carried, digital transactions are popular and convenient, and ease, privacy, and security drive con...
2023 Know Your Customer Solution Scorecard
Know Your Customer (KYC) protocols are the bedrock of robust identity verification. Understanding at a granular level whom an organization is doing business with translates into a ...
Make informed decisions in a digital financial world