9 Trends That Will Define Identity Verification in 2025

Regula surveys show that the number and kinds of identity fraud have risen significantly over the last two years. While the most affected sectors are (naturally) those where the money is—Finance and Banking, FinTech, and Crypto—the results show that other industries also suffer from the growing number of identity fraud attempts.

So, how do various threats impact identity verification trends?

Deepfake technology has grown from a niche concern to a significant challenge in identity verification. In 2024, half of the businesses participating in our survey fell victim to at least one audio or video deepfake. In the Financial sector, the rate was even higher, reaching 57% of Crypto organizations attacked by audio deepfakes. 

With cheap AI tools readily available, even amateur fraudsters can make these fake images, videos, and audio more realistic. Presented with the help of injection methods (video and voice) or replays, deepfakes can bypass traditional verification methods, such as basic selfie comparisons or document and biometric liveness checks. Also, deepfakes have reached the milestone where humans often fail to detect them. This situation calls for new hardware-enabled solutions and approaches. 

The first and most critical step in combating deepfakes is controlling the signal source. Implementing this is rather difficult if the IDV process is performed in a web browser, but some mobile platforms provide such an opportunity by using native apps. Without signal source integrity, even the most advanced verification systems already struggle to differentiate between real and fake inputs.

At the same time, biometric verification—facial recognition, fingerprint scanning, or voice identification—remains paramount. While deepfakes aim to undermine biometrics, these technologies still play a key role in enhancing identity verification, especially when paired with signal source control. Biometric methods provide additional layers of defense. Liveness detection via 3D depth sensing, micro-movement tracking, and light reflection analysis helps ensure the presence of a real, live person, making it harder for static deepfakes to succeed. However, these methods must constantly evolve to keep pace with ever-improving deepfake technology.

While the rise of deepfakes has captured headlines, traditional threats like fake IDs continue to account for the majority of identity fraud attempts. Even though we’re heading towards an all-digital future, conventional physical identity documents will not disappear that soon. So, we still have to deal with them and the related threats. Regula’s latest survey reveals that most businesses (58% global average and up to 76% in FinTech) still encounter fake or modified physical documents. This rate is notably higher than that of AI-generated forgery incidents (which accounted for 50% of fraud attempts globally). 

This implies that businesses must find a balance: while preparing for the complex attacks of the future, they must not neglect the more common threats of today. Moreover, companies should adapt their anti-fraud measures and switch to more advanced technologies, such as liveness detection, to be able to effectively identify forgery that is becoming more and more sophisticated. For example, during remote verification, liveness detection technology allows companies to ensure that they are dealing with real physical IDs and, consequently, to enable more robust document checks, thereby minimizing the risk of fraud.

Fraudsters are becoming more sophisticated, and IDV technologies must evolve even faster. To effectively tackle current threats, businesses need to go beyond traditional approaches. This is true of IDV processes and workflows, as well as new methods of presenting and affirming identity. As a response, we’re seeing the emergence of digital identities, the adoption of AI for IDV purposes, the integration of identity verification with other technologies, etc. 

Such transformative tools and strategies are shaping the future of IDV solutions, and can address critical issues in fraud prevention.

AI and machine learning (ML) technologies have been in use for identity verification purposes for quite some time now. However, due to the growing sophistication of fraud, their contribution to IDV is becoming more tangible. Indeed, to fight AI, humans need AI. This is especially crucial during remote verification, where physical document inspection and in-person checks are impossible.

Today, an advanced neural network (NN) can not only analyze vast datasets and automate routine tasks but also detect subtle inconsistencies and uncover fraud patterns that would be invisible to the human eye. For instance, they can identify manipulated images, detect repeated use of biometric data across different identities, or flag unusual behavioral patterns during onboarding.

Despite their growing prominence, integrating AI and ML into IDV requires constant fine-tuning. Fraudsters are becoming real pros at bypassing even sophisticated IDV systems, so developers must continuously train and update their models.

As digital interactions become more interconnected, IDV cannot be isolated from other technological solutions deployed in organizations. Identity verification workflows and technologies will inevitably be designed to work alongside a wide range of other IT systems so that businesses can take a holistic approach to security and user verification. 

For example, IDV can be combined with cybersecurity solutions to enhance defense against a larger variety of digital threats. Also, IDV will be reinforced with a range of multi-factor authentication technologies, so that an individual can be identified not only by their ID or biometrics but also by their proof of address, tax number, phone number, etc. This is known as non-document verification. 

Additionally, we expect that IDV systems will be connected to a greater number of various databases and information sources to ensure more robust checks.

Identity verification has become integral to many services and systems, so it’s no surprise that all the participants of the process want it to be seamless, secure, and user-friendly. That’s where Journey Time Orchestration (JTO) comes in: it’s a platform approach that focuses on managing identity-related tasks dynamically throughout a user’s digital journey. For instance, let’s take the case of a banking app onboarding process: platform-based Journey Time Orchestration with IDV will ensure a seamless experience by adapting to user actions in real time—for example, instantly verifying an uploaded ID and selfie during onboarding, unlocking premium features upon successful verification, or triggering additional checks when the user logs in from a new device. 

JTO incorporates multiple identification technologies—such as biometrics, traditional passwords, and third-party identity systems—into a unified, layered framework. For example, during a single digital session, a user might log in using facial recognition, verify their identity with a government-issued ID, and authorize a transaction via a one-time passcode. Each step is dynamically orchestrated, balancing security and convenience for both end users and businesses.

The Journey Time Orchestration approach also simplifies identity management for businesses by integrating diverse technologies into a single orchestration layer. This not only enhances the user experience but also ensures compliance with security standards and regulatory requirements. Also, it adds visibility to the overall IDV process, offering comprehensive analytics accumulated in one source.

Identity verification is no longer limited to traditional document checks. As technology advances, the range of verification methods is expanding to include digital identities, the Digital Travel Credential (DTC), mobile IDs, and more. These innovations are making identity verification faster, more flexible, and automated, reducing the chances of human-related errors and enhancing security and user privacy.

For example, the DTC appeared as a secure digital solution to enhance and streamline the travel experience. It is designed to consolidate key personal information from state-issued IDs into a verified virtual document that travelers can store on their smartphones and share when needed. Proposed and developed by the International Civil Aviation Organization (ICAO), the DTC was introduced to facilitate clearance procedures and verify travelers' eligibility to enter their destination before they board a flight, ensuring a more efficient and seamless journey.  

Mobile driver’s licenses (mDLs) are becoming increasingly popular thanks to their convenience. Users can store these credentials securely on their smartphones, enabling quick verification without needing physical documents. For instance, in the United States, multiple states have mDL programs (such as Colorado). They are already issuing digital driver’s licenses to residents. 

To ensure better fraud prevention, identity verification will go beyond document and biometric checks and will comprise other verification methods, for example, direct validation against governments’ or issuing authorities’ databases. This might offer a new layer of security. Still, it comes with challenges, particularly in regions like the EU where strict regulations such as the GDPR limit data accessibility.

Threats and technologies do not shape the IDV industry's development alone. Much depends on regulatory frameworks and user expectations. 

Governments worldwide are actively introducing new tighter laws and guidelines to oversee various aspects of versatile IDV workflows. This is pushing businesses to adopt more robust and compliant solutions. 

Simultaneously, as IDV is penetrating nearly all digital interactions, users are seeking faster, more seamless experiences. This is prompting a shift toward customizable and user-friendly IDV processes.

Let’s see how new use cases, changing user expectations, and stringent regulations are transforming identity verification trends.

Governments around the world are introducing stricter regulations for online age verification, driven by growing concerns over minors accessing inappropriate content, online gambling, or restricted services. Inadequate age verification measures can lead to severe consequences, including significant fines, legal actions, and reputational harm. For example, Texas recently enacted a law imposing civil penalties of up to $250,000 for failures in age verification that allow minors to access harmful content. 

As a result, the demand for robust IDV is increasing. Businesses are not the only ones seeking solutions capable of verifying users’ age quickly and reliably; IDV vendors are also researching new technologies, improving current methods, and introducing new ones. 

One of the most promising advancements in this area is biometric age estimation. AI-powered algorithms can analyze facial features to estimate a user’s age in real time, eliminating the need for birthdate checks (in IDs) in many cases. Plus, liveness detection is starting to play a more significant role in this context as it adds much-needed trustworthiness to age verification.

User expectations are making a significant contribution to the evolution of the IDV landscape. Today’s users demand verification to be not only secure but also fast, seamless, and tailored to their needs.

Convenience is key to meeting these expectations. Lengthy or complex verification processes often lead to user frustration and increased drop-offs, especially during onboarding. Businesses need to address this challenge by implementing streamlined workflows. For example, facial recognition combined with liveness detection allows users to verify their identity in seconds without the need for tiresome manual inputs.

Customization is another critical factor. Different industries, geographies, and organizations have unique requirements, and a one-size-fits-all approach is naturally insufficient. Businesses are interested in flexible IDV solutions that can be tailored to their specific use cases.

Accessibility also plays a significant role in shaping IDV solutions. Modern technologies are increasingly being designed to ensure easy use for people with special needs—for example, for those who have difficulties distinguishing between colors. Besides, the world’s population is rapidly aging, and those who are now comfortable with small fonts, for example, will soon not be okay with them, so IDV solutions must evolve and “age” together with their users.

In general, this trend reflects a global shift toward user-centric design across the digital ecosystem, where convenience and personalization are prioritized.

In the era of remote and hybrid work, staffing brings new challenges. It’s quite common nowadays for employers to reinvent onboarding, authenticating, managing employees, and validating their education/qualification certificates across diverse locations. Thus, IDV is becoming imperative for the workforce. 

Workforce fraud cases highlight the risks of weak identity verification, such as fake identities in remote work, ghost employees siphoning payroll funds, and insider threats exploiting falsified credentials. These incidents put sensitive company data, financial assets, and operational integrity at risk, exposing organizations to significant security breaches, reputational damage, and regulatory penalties. They also undermine trust within the workforce and with external stakeholders.

As we move ahead into 2025 and beyond, we may see new challenges and opportunities arise that will reshape the current state of identity verification. The key will be balancing security with usability, while adapting to emerging threats and shifting user expectations. To stay relevant, the industry must remain agile and responsive, evolving to meet the demands of an increasingly complex digital landscape.