Regula Shares Identity Verification Trends to Shape 2024 and Beyond
Experts at Regula, a global developer of forensic devices and identity verification (IDV) solutions, outline the trends for the industry. Rising identity fraud demands businesses adopt new, reliable verification methods. Beyond fighting fraud, they expect organizations to use IDV in various processes to enhance client relations and build trust.
Staying ahead in ID verification ensures a secure and flourishing future for organizations. This is why Regula experts are releasing their forecast for the trends for 2024 and beyond. Based on an analysis of recent developments in the IDV area, the experts highlighted nine trends, with those revolving around identity fraud being the most critical.
Liveness-centric approach and authenticity cross-checks as the only options to prevent sophisticated identity fraud
Addressing identity fraud is crucial, with 43% prioritizing it, according to Regula’s survey.
To succeed in combating document fraud and counterfeiting, IDV vendors must go beyond basic checks and enable comprehensive cross-referencing of all the data. This will be one of the major trends when developing IDV solutions in the coming years.
Cross-referencing all the data in the document, including biometric checks, makes it possible to identify inconsistencies that may signal fraud. For example, a fraudster might attempt to replace an ID holder's portrait to bypass verification. However, such a substitution is likely to fail with secondary or ghost photos embedded in the document as holograms, lenticular images, or other security features, and portrait comparison will reveal this mismatch. Cross-checks play a crucial role in identifying data discrepancies, preventing fraud before it causes any harm.
However, the largest concerns are associated with the surge in AI-generated identity fraud, recognized by 80% of global companies in Regula’s identity verification report. These sentiments are especially shared in the USA.
An effective tool to combat AI-generated identity fraud is yet to be developed. However, it’s currently possible to spot and prevent such fraud if you choose to deal only with physical objects, not document scans or pictures of a person. Being able to verify real documents and real people in real time helps to confirm the presence of an actual individual and their ID. This requires comprehensive biometric checks and special technology for document liveness verification to ensure the authenticity of an ID by verifying its dynamic security features or checking if a document is being presented from a digital device. This is the road IDV vendors and users will have to take in the near future.
Use cases for IDV are expanding: Vendors to come up with flexibility and customization
Identity verification has gone beyond traditional KYC (Know Your Customer) in Banking or FinTech. Now, it’s an anti-fraud measure and a tool to enhance the customer experience in various industries, including car-sharing services, insurance, medical facilities, gaming platforms, etc. For instance, the online casino of Grand Casino Luzern implemented remote identity verification and managed to accelerate customer onboarding. Moreover, using IDV for account recovery, remote hiring, and elevating trust in marketplaces is becoming increasingly common.
According to Regula’s survey, 91% of businesses worldwide plan to increase their IDV spending within the next one to three years. This growing popularity means IDV vendors will have to develop new features and enhance the capabilities of existing IDV technologies. Also, many businesses need customized solutions to meet their unique requirements. This is creating a general trend for flexibility, both in the IDV process itself, and IDV solutions in general.
Digital nomads, IDV regulation, digital passports, and more
Among other trends that will make vendors and businesses reconsider their identity verification technologies and processes, Regula’s experts point out:
the necessity to recognize an extended variety of IDs and provide additional language support due to the sharp and unstoppable rise of the digital nomad movement and general mass migration all around the world;
the growing need for a single-vendor solution for both document and biometric checks;
the prioritization of the document scan quality, which contributes to complete automation of capturing IDs;
zero trust to mobile when verifying e-documents;
implementation of new IDV regulations.
Also, Regula’s vision encompasses the phenomenon of digital passports, which some countries have started piloting and many others are currently discussing.
The evolution of identity documents into digital IDs, portable identity, or other non-physical forms represents a logical progression. While closely tied to government databases, it may currently feel like a local story only. A more plausible scenario involves a hybrid approach, requiring organizations to authenticate both physical and digital IDs. Theoretically, principles which are effective in remotely verifying physical IDs can be seamlessly adapted for digital IDs.
To learn more about the trends that will shape the IDV industry in the coming years, follow this link.