The rapid pace at which our lives are becoming digitized is inescapable. The increasing amount of personal data that is now online - think payment details, health records, online purchases - raise concerns about data security and user authentication.
Online verification powers most of our everyday tasks, be it logging into our apps or devices, shopping online, or managing digital wallets. In an attempt to create a smarter world, technology has amplified the ability to blur the lines between the virtual space and the physical world. In today’s IoT-driven environment, a better digital experience is made possible largely by sourcing data
With data breaches on the rise, a report by a UK-based insurance group estimated that a small business is hacked every 19 seconds in the United Kingdom - reinstating the need for enhanced cybersecurity and data protection. Here’s where digital identity plays a crucial role - it enables the user to control access to their data, while operating from anywhere.
In a digital space where online products, services, and banks interact with their customer’s data, stronger user authentication and digital identity are important parameters to achieving better cybersecurity. This has prompted many banks to nudge their way into identifying enhanced digital identity models - ones that allow facial, voice, and fingerprint recognition. The technology takes a more progressive angle and reduces some of the bigger pain points for customers, be it multiple passwords across different systems, friction across various online transactions, or securing data online.
The True Risk of Data storages
Companies are exposed to multiple risks through their increasing reliance on various systems and applications. With data sensitivity on the rise, providing a highly secure system becomes more crucial by the day. When multiple accounts are interlinked, a data breach on one platform can cascade to a bigger crack in the system, causing financial mayhem and exposing a large amount of confidential data.
With rising numbers of fraudsters infiltrating user accounts through mobile bots or remote access attacks, businesses that leverage on universal digital identity networks such as Passbase have a leg up when it comes to user authentication and providing a secure network for digital identification.
Better yet, by leveraging machine intelligence and tapping into risk-based authentication, users are alerted in real-time if the system detects fraudulent activity - a significant step in improving cybersecurity and detecting online fraud. This is particularly crucial for the financial sector - one which has been reportedly bearing the brunt of both human-initiated and automated attacks.
A report by research company LexisNexis highlighted that while online takeover attacks declined globally by over 50%, the financial industry saw a staggering 107% spike in fraudulent activity. The rising numbers force the organizations to enable enhanced security features, while still complying with demands for data privacy and providing a low friction, seamless experience for the customer. This flags the need for companies to rethink user verification and their approach to digital identity.
Companies need to actively adapt themselves to the changing face of technology by evolving from more traditional methods of user authentication. Innovation in the fields of blockchain, biometric authentication, and banking have raised the bar.
Despite the concern over account takeovers, what poses a bigger risk is the usage of the stolen data - it could be used to create fraudulent accounts for credit cards, applying for insurance policies or loans, oftentimes risking the company’s reputation and business. Tapping into a universal digital ID platform such as Passbase will empower users with direct control over their data.
The Passbase product uses facial recognition technology to enable customers to create a universally trusted digital identity, providing them the option to reuse it anywhere on the internet again to authenticate themselves. The user gets to decide what data to share and whom to share it with. The platform also provides companies the option to check the accounts tagged to all its users, which will help them sift through and remove fake accounts within the company’s database.
By disrupting the traditional, single-source identity that has faltered several times, the rising number of digital ID systems mushrooming over the globe create real advantages for users - transparency, control and ample security - perks that an increasing number of users and organizations may potentially adopt in the coming years. With enterprises seeing a rise in digital transactions, relying on customer verification through centralized servers belonging to Google, Facebook, etc. can make it vulnerable to breaches. A bigger problem is where authorities have the provision to revoke access or delete users' accounts. Passbase’s universal digital identity will help enterprises tackle this problem by granting users more control over their personal data.
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