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Five Identity verification trends to look out for in 2023

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It has become popular in recent years to say that data is the new oil. But, more than just data, we believe that “identity data” is the new oil. Why? Identity data allows us to conduct various critical daily activities online, such as opening bank accounts, applying for benefits, making grocery payments, ordering a ride to get around, receiving insurance payouts, and accessing healthcare services. Our identity literally opens the doors, and we can see how important it is to our daily lives today. As a result, it is critical to emphasize that as our online presence continues to expand exponentially, so do the identity verification challenges.

As technology advances and the need for secure online transactions grows, identity verification is becoming increasingly important. We must ask ourselves a few questions, such as the outlook for an effective identity verification solution in 2023. What impact will the government or regulatory actions be on current identity verification methods? In the age of deep fakes, how can you be sure you’re dealing with genuine customers? Identitypass’ research and security team held a brief panel session to answer these questions and discover what businesses can expect in 2023 and beyond.

In 2023, there will be several new trends in identity verification that companies and individuals should be aware of. Here are the top five trends we found:

  1. Growth of the IDV market: The IDV market will continue to grow exponentially due to various factors, such as the increasing number of online transactions and the need for improved fraud protection, as well as the widespread adoption of a remote mode of living and working. Increased demand for secure online transactions is expected to drive the global identity verification market to $32.94 billion by 2023. In 2023, artificial intelligence and machine learning will play an important role in identity verification. These technologies will be used to analyze data and identify patterns that can be used to validate an individual’s identity. Consequently, the demand for identity verification solutions is expected to increase as more businesses go online.
  2. More stringent compliance regulations: Regulators will continue to impose stricter data privacy protection and identity verification measures this year. Businesses will need to step up their identity verification processes to meet compliance requirements as data privacy laws become more stringent. More business executives will invest in identity verification technologies to meet the growing demands of compliance regulations. As regulations tighten, more businesses will outsource their identity verification needs to specialized providers.
  3. Increased biometrics-related fraud: As biometrics are increasingly used in identity verification, fraudsters are devising ways to circumvent these systems. As there is much data on human faces on the internet, efforts to develop new methods of biometric fraud will increase. Expect an increase in biometric-related fraud as attackers devise new ways to circumvent biometric systems. Businesses must invest in more advanced biometric technologies and implement stricter security protocols to combat this threat.
  4. Development of Digital Hygiene: More personal data have been shared online recently, and digital hygiene is becoming increasingly important. Customers will become more skeptical of their online data in 2023 and beyond as providers attempt to access as much personal data as possible. As a result of this trend, more companies will invest heavily in digital hygiene solutions to safeguard their customers’ personal information. Furthermore, digital hygiene solutions will assist businesses in better protecting personal data while also lowering the risk of identity theft and fraud.
  5. Prioritization of liveness checks: There will be a greater need to ensure that submitted IDs are valid and authentic. Businesses will need to prioritize liveness checks as the use of identity verification technologies grows to ensure that the person being verified is not an imposter. More companies and financial institutions will likely use selfie-based authentication to verify the identity of their customers in 2023, with businesses investing in liveness detection technologies to ensure the authenticity of their users. Liveness checks will be critical in lowering the risk of identity fraud and ensuring the security of online transactions.

In summary, identity verification is becoming increasingly important in our digital lives. As fraudulent activities increase, businesses must be adequately prepared (see our latest report for some of our proven anti-fraud strategies). The identity verification space has seen tremendous growth in recent years. 2023 will be no exception, with some critical developments to consider for digital businesses. These trends will not only deepen digital identity verification methods but will also emphasize the security and safety of individuals and businesses online. Companies and individuals must therefore stay informed about these trends to protect themselves from fraud, ensure secure online transactions, and ultimately remain compliant.

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