Science & Technology

Key trends in online identity verification in 2022

We expect as much of our lives go online Personal information fraud Try to keep pace. Fortunately, technology is still one step ahead.

Some trends may seem dark, but there are easy and convenient ways to stop spoofing criminals.

NFT Marketplace needs to verify user identity to reduce fraud

Non-fungible token The (NFT) marketplace has grown rapidly this year to meet market demand for the relatively new concept of buying and selling rights to digital commodities (often art).

But lately, the success of these platforms has been overshadowed by a lot of negative press. There were many problems: buyers, and the general public, probably don’t understand what they’re buying, and some sellers probably expect too much.

Ultimately, some protection for buyers is needed for NFTs to become a real asset class. This may need to be facilitated by these trading platforms.

One of the first steps is to verify the identity of the buyer and seller on the platform. In addition to ensuring that the seller has the right to sell the digital asset, verifying the identities of both parties to the transaction helps reassure people. They both know that they are associated with a real human being (even if their identity is kept secret by the platform) and the trading platform can confirm ownership.

This is like in the early days of social media, where it wasn’t particularly clear if the person who posted as a celebrity or politician was actually that person.

New FinTech start-ups will continue to grow and fraud will increase

As both consumer and investor demand for FinTech start-ups continues to grow, more online banks and cryptocurrency investment platforms are expected to be launched next year. Unfortunately, malicious attackers are ready and often target these early platforms in the hope that fraud prevention may be considered later at launch.

However, as these start-ups enter the market, they shift their initial focus from pure optimization of new user sign-up to fraud prevention on the platform to check for the risks and compliance needed. We look forward to moving from to a more comprehensive fraud prevention solution. .. Fortunately, there are identity verification solutions that can help both and prevent fraud while optimizing sign-up conversions.

Similarly, the tough job market for software developers will force these new fintech companies to look for no-code or low-code ID verification and compliance solutions rather than trying to build them in-house.

More companies (beyond what is required by law) will adopt stronger identity verification methods to combat ongoing data breaches.

Large-scale data breaches are progressing rapidly. The types of information collected by each hack / data breach vary, but social security numbers, dates of birth, addresses, or knowledge-based authentication alone are sufficient security for most account signs with data source verification alone. It is becoming clear that there is no such thing. -UPS. Malicious people can buy this data on the dark web very easily.

In 2022, industries other than financial services may also require additional validation methods when new customers sign up for their accounts. Technology is here. It’s now much easier for customers to verify that they physically own the required identity document and that they are the actual person signing up for the service.

Importantly, advances in AI and machine learning allow this verification process to be fully automated and completed in seconds, so this additional layer of security does not impose an additional burden on customers.

Covid has revealed a vulnerability in the “human-in-the-loop” verification method that requires real humans to review their own photos and documents. For example, one verification company uses people from around the world to verify passport documents for airline check-in kiosk. Enterprises are hoping to move to more automated solutions. This also benefits end users with much faster validation.

Synthetic IDs pose an even greater risk to identity security in 2022

As a result of the Social Security Administration’s randomization of SSNs, synthetic ID fraud has occurred. As a result, many fraud detection systems today cannot quickly verify the reliability of SSNs.

Synthetic IDs are often valid SSNs combined with valid personal information (PII) From another person, or from a fully manufactured SSN and PII like a shipping address.

The insidiousness of synthetic ID scams is often a “victimless crime” in that no one is targeting the scam. Instead, it’s usually the platform itself. These fraudulent attempts are much more difficult to detect, as there are no people to warn the platform and no personal victims.

Again, you need multiple formats ID verification You can solve this problem. Specifically, by requesting liveliness and written verification, the person signing up for the account has the actual document, the ID data matches what was entered, and that person. You can be sure that you are a living person (the photo also matches what was on your ID). By 2022, more organizations are expected to adopt this multi-factor identity verification to thwart synthetic identity fraud on the platform.

Conclusion

The threat of fraud and malicious individuals may seem to be greater than ever, especially as pandemics have pushed much of our financial life online. Fortunately, there are technologies today that can help stop these malicious individuals without actually burdening legitimate customers.With widespread adoption, we believe 2022 will be the beginning of the end of online. Personal information fraud..

Key trends in online identity verification in 2022

https://www.helpnetsecurity.com/2021/12/03/identity-verification-trends/ Key trends in online identity verification in 2022

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