As we move further into the digital age, identity verification has become an increasingly critical concern for businesses. With advancements in technology and shifts in regulatory requirements, several trends are emerging that will shape the landscape of digital verification in 2024. In this post, we’ll explore five significant digital verification trends that every U.S.-based business should be aware of.
Age Verification for Digital Transactions
Age verification for digital transactions is becoming more prevalent as businesses strive to comply with laws regarding age-restricted products or services, and this trend is only going to accelerate as we head into 2024. In fact, over the past year, 35 states considered proposals to require parental consent and age verification for minors using social media or seeking to engage in certain digital transactions, with 11 ultimately adopting laws or resolutions.
While some consumer advocates and civil libertarians have opposed age verification requirements over questions of privacy and effectiveness, such mechanisms are likely to become increasingly common on websites and other digital platforms over the next 12 months and beyond.
Growing Adoption of Digital IDs
The adoption of digital IDs is expected to surge in 2024.
Just last November, for example, the members of the European Parliament reached a provisional agreement on the creation of a pan-European digital identity framework. In the United States, 11 states have already launched active digital IDs, while nine are in the process of doing so, and a dozen are exploring pilot programs. The TSA has also been testing digital IDs, including mobile driver’s licenses from participating states, at select airport checkpoints since early 2022.
Biometric ID Scanning Is Combatting Fraud
Biometric ID scanning, which identifies people through specific physical or behavioral characteristics unique to every individual, such as fingerprints, facial or voice recognition, iris patterns or even how they walk or move, is being utilized more frequently for identity verification.
Because these characteristics are virtually impossible to replicate, biometric ID scanning methods are far more secure than passwords and knowledge-based authentication. Banks and other financial institutions are increasingly turning to biometric ID scanning technology to ensure the security of their customer accounts. At the same time, at least 20 states have adopted similar measures to verify the identities of people claiming unemployment insurance and other benefits. With fraudsters and their methods growing increasingly more sophisticated, we expect a wider range of governmental agencies and businesses will move to adopt biometric ID scanning verification methods in 20204.
Scammers Are Turning to AI
With the rise of artificial intelligence (AI), scammers have started to utilize AI technology to create realistic deep fakes and build incredibly sophisticated synthetic identities. The rise of deep fakes is especially concerning, as generative AI can accurately depict an individual’s actual movements and voice, potentially allowing bad actors to overcome many of the facial and voice recognition tools critical to biometric ID scanning.
We’ve already seen several high-profile instances of generative AI being used in this way. As fraudsters become more adept at using this technology, AI-enabled fraud will likely grow exponentially in 2024.
Demand for Industry-Specific Verification Solutions
More and more industries are embracing identity verification solutions that cater to their distinct requirements. For instance, the healthcare sector is integrating biometric patient verification methods to bolster the security of medical records. At the same time, the travel industry is actively exploring contactless biometric identification technologies to facilitate seamless experiences at airports.
Customizing identity verification solutions for specific sectors highlights the market’s remarkable adaptability in meeting diverse industry demands. We expect that the demand for tailored solutions will grow in 2024 as businesses and organizations seek to ensure their unique security needs are effectively addressed.
Ensure Secure Transactions With Lyons Commercial Data
As the verification landscape continues to evolve rapidly in 2024 and beyond, forward-looking businesses need to partner with a provider capable of keeping them ahead of the curve.
With a suite of risk management and compliance products designed to meet and exceed the challenges of this dynamic field, Lyons Commercial Data is ready to equip your team with robust, versatile solutions capable of meeting the unique demands of your business and maintaining your customers’ trust.
Don’t just adapt to the change; anticipate it! Contact us today to learn how Lyons can help secure your business for tomorrow.