Digital identity verification is a term that is rapidly evolving and often is given different definitions.
Juniper Research considers digital identity to be: ‘A digital representation of an entity; this can be one or more individual pieces of identifying data, an event, or a signal such as an assurance indicator, and similar, yet to be determined, items defined by the industry.’
Within the parameters of this definition, digital identity verification “can be considered not merely as identifying an individual, but also validating their attributes and features represented digitally; using digital solutions.”
Juniper Research pointed out that digital identity verification is “the verification of identity using digital methods.”
The report explained that digital identity verification is used “to enable the remote verification of an individual’s identity, ensuring that they are who they claim to be.” This is most often used for digital onboarding customers “onto a service, but can also be used to verify identity when authorizing money transfers, or for access management.”
With the growing threats and increasingly complex fraud methods “used by malicious actors, it is vital that institutions that handle sensitive data use the most up-to-date methods to protect their users.”
The report added that many digital identity verification vendors “offer solutions that increase the accuracy, security, and user experience of the onboarding process, and of other digital identity verification use cases. It is also important that due to the variety of use cases, different forms of identity verification will excel in different environments.”
With the growth of eCommerce, digital banking, and other digital financial services, these methods needed “to evolve to provide security to users operating in the online space.”
In response to this, there “was also a growth in the volume and complexity of the fraud threats faced.” This has led to “a constant arms race between fraud and digital identity verification methods.”
A major advancement in digital identity verification in the last decade “has been the emergence of commercially viable biometric systems to allow for user verification.”
This is most prominently seen in mobile devices. Initially fingerprints, and then facial scans, were used “to control access to the device.” These systems are being “integrated into third-party digital identity verification systems; making it easier for a user to verify their identity using their mobile device,” the report added.
The report concluded:
“The number of digital identity verification checks will surpass 70 billion in 2024; growing 16% on the previous year’s number of 61 billion.”