Editorial

Surge in online transactions make digital identity a necessity

Report from GBG shows businesses understand importance of digital identity, but highlights increased complexity

Posted 1 December 2020 by Christine Horton


Post-pandemic, a digital-first business model is no longer a luxury or a forward-looking strategy – it’s a necessity.

That’s according to a new report, GBG State of Identity 2020, which examines attitudes to fraud, customer experience and technology.

The report states that as the conversation has shifted to going ‘digital-first’, “the ability to onboard the right customers and transact securely with them while keeping bad actors at bay has made the difference between thriving and barely surviving.”

The study found that 81 percent of businesses believe identity verification can be a strategic differentiator.

However, 54 percent of businesses say identity verification has become more complicated and complex in the last three years. 54 percent of businesses finding this a more difficult balance to strike in the past three years. This might indicate a struggle between delivering a frictionless customer experience and fraud prevention and security.

Forty-four percent of businesses say that protecting the consumer is their main driver for identity fraud investment. Two thirds of organisations experienced known or suspected identity fraud attempts in the last 12 months.

Fifty-nine percent of respondents opened at least one online account during the pandemic, and half of consumers are more likely to ‘go cashless’ because of COVID-19. The study revealed that a third of consumers have become more concerned about fraud due to COVID-19 and a third believe their personal information is currently for sale on the dark web.

“With COVID-19 and digital acceleration, we have seen big shifts in attitudes from consumers and companies on identity, and the report’s findings reflect those shifts,” said GBG managing director identity & fraud EMEA Boris Huard.

“As we work with our customers, we understand the growing importance of identity verification not only to comply with regulation, but to prevent identity fraud.” 

Date of birth was listed as the most important form of identification (69 percent), followed by driver’s licence (61 percent) and passport (58 percent). Biometrics is currently bottom of the list at 28 percent.