The rise in technological advancement forced companies to choose online methods of operations. Digital companies undergo several ups and downs, but the identity authentication market undergoes the most modifications. Criminals also took advantage of the novel outbreak and fraudulent activities drastically arose in 2021. Thanks to identity authentications software, it becomes easy for companies to fight identity scams during these hard times.
The identity authentication market is estimated to increase at a greater pace this year, and by the end of 2025, the estimated market size will be USD 20 billion. For companies like yours, it is a distressing situation since an exponential increase in the online scam will result in large fines for the business and affect brand repute. Before the circumstance becomes more harmful than it previously was, your company must use identity authentication. With ongoing changes in the company, use-cases for identity authentication exchange for 2021 are considerably fascinating. Let’s dive deeper into the 5 trends for identity authentications in 2021:
What is identity authentication?
Identity authentication or digital know your customer is a technique of authenticating the identity of the users through online means. It is a quicker technique that authenticates identities for a smooth user experience in real-time. Identity authentication verifies documents and examines the liveness detection of the customer with facial recognition.
Online Identity Authentication Trends in the present year
Identity authentication checks will encounter several ups and downs in the present year. Due to the increase in novel outbreak-associated scams, we can assume some latest trends for the present year as well. Let’s dive deeper into the blog to find out 5 online identity authentication trends to assume in 2021:
1.Identity Scams to Boost More Than Ever
After the tough time encountered in the previous year, criminals are all set to misuse companies in the present year. Identity scams will rise this year at a greater pace than ever.. Among all sorts of identity scams, synthetic identity scam and account takeover will be most terrifying.
2. Criminals will Adopt AI for More Advanced Frauds
AI has made all company operations easy, but fraudsters are also adopting artificial intelligence algorithms for their fraudulent activities. 2D or 3D images, counterfeit identity documents, and account takeover are some instances of intelligent scams. Therefore, the COVID-19 pandemic contributed to the major rise in scams, and we can see the greater intensity in the intelligence of several scam types in 2021.
3. Identity Authentication to Encounter Ethnicity Problems
Ethnicity problems in identity authentications have been controversial over the last few years. In the present year, identity authentication will gain more prominence. Why is face verification a main problem for individuals? Therefore, the identity authentication checks formed for a particular region are trained for liveness detection and micro expression analysis. Artificial intelligence models are trained to recognize people of a particular region that bring problems when similar checks are given in other nations of the world.
For example, artificial intelligence-powered identity authentication services with users concentrated in EU regions might not be able to authenticate individuals with similar accuracy. We are presently serving companies in each corner of the globe, which increased the verification and precision of identity authentication algorithms.
4. KYC and AML to be more stringent:
Know your customer and anti-money laundering have been strict for all companies but after the COVID-19 pandemic, these laws are anticipated to become even more strict. The significant increase in online frauds and theft has led regulatory authorities like the financial action task force to impose more strict laws. Therefore, the EU has imposed a sixth anti-money laundering directive to ensure countries in the European Union can fight crimes in an enhanced way.
Online identity authentication checks are vital for companies in 2021. The trends for identity authentication checks are fascinating for all companies. Identity scam will rise this year which implies companies require enhanced authentication measures to reduce the risk of scam. Therefore, a new sort of identity theft will affect companies. These new scams are replay attacks and account takeover fraud. Finally, user identity authentication regulations will become more strict and biometric verification will usually be a problem for businesses if artificial intelligence algorithms are not trained for various regions.