Digital Identity: Global Roundup

United Kingdom / United States

Mitek has launched MiPass, a passwordless identity authentication solution that allows a person to access digital accounts using their voice and face.

To access a digital account using MiPass, a person uses a smartphone to take a selfie and then record a phrase.

Mitel notes that combining the two is a significant security improvement beyond the face recognition-only systems many use today. It reduces the risks associated with on-device stored biometrics, which can be compromised, shared between people or overwritten with a simple passcode.

United States

A new report from Socure forecasts that synthetic digital identity fraudsters will reap $5 billion in 2024 – double the estimated loss this year. Much of the fraud is designed to hide things like bad credit histories or criminal records.

The $5 billion total builds on synthetic fraud activity occurring now.

The company says that today there are 124 million US households with one member who has at least one bank account. It assumes anywhere from 1 percent to 3 percent of all demand deposit accounts in banks and fintechs are synthetic persona frauds. Socure chose 2 percent as a middle ground.

That means 2.48 million biometrically enabled fake accounts now, and on average, each account will steal $1,000 this year, for a total of $2.48 billion.

United States

Voters in the US state of Mississippi will be able to verify their identity when proving their eligibility to vote in November’s mid-term elections using a digital version of their driving licence stored in the state’s Mobile ID digital identity wallet on their smartphone.

Mississippi Department of Public Safety (MDPS) launched its Mobile ID scheme in November 2021 and says that about 100,000 residents have since downloaded the app and that more than 51,000 users now have a digital driving licence.

Prior to a “first real statewide test” during the general election, the launch of Mobile ID “has been very soft” and “just a peek into the future of what this app is going to bring to Mississippians,” MDPS’s Keith Davis told local TV channel WLBT.

“We are one of 10 states that is actually fully engaged with mobile ID.”

Norway

IDEX Biometrics ASA and TrustSEC, a provider of digital authentication solutions for access control and crypto wallets are bringing biometric smart card solutions to market. The partnership agreement combines the TrustSEC smart card module, including card operating system and applets, with the IDEX Biometrics TrustedBio fingerprint sensor solution.

The biometric smart card solution will secure access to digital- and crypto currency hashwallets, as well as managing physical and logical access for corporations, schools and governments. It is targeted to reach the market in Q1 2023. With this collaboration, the companies will mutually benefit from IDEX Biometrics TrustedBio sensor and TrustSEC’s experience in smartcard development and customer base within the cybersecurity market.

Global

The digital identity verification market is set to grow to $16.7 billion in 20261, providing an important opportunity for secure solutions for crypto hardware wallets, digital identification and card-based access applications.

The global digital identity solutions market size was valued at $25 billion in 2021. It is projected to reach $116.07 billion by 2030, growing at a CAGR of 18.6% during the forecast period (2022-2030).

Europe

The Czech Presidency of the EU Council presented a new compromise last week based on a debate at the ambassadors’ level on addressing the most sensitive questions blocking the European digital identity.

The fifth compromise, seen by EURACTIV, results from the meeting of the Committee of Permanent Representatives on 14 October.

The Czechs tried to find common ground on topics like use cases, level of assurance and trusted providers.

Canada

A new resolution sees federal, provincial and territorial privacy regulators note that the digital identity ecosystem emerging in Canada will allow individuals, businesses and governments to confirm identities and carry out transactions online with “a high degree of efficiency and confidence.”

“The development and implementation of a digital ID ecosystem is a tremendous opportunity to demonstrate how innovation and privacy protection can coexist,” Privacy Commissioner of Canada Philippe Dufresne says.

“By identifying, understanding and mitigating privacy concerns at the outset, governments and stakeholders will engender trust among Canadians and show their commitment to privacy as a fundamental right.”

Initially struck during a meeting in St. John’s N.L., in September between Commissioner Dufresne and his provincial and territorial counterparts, the resolution sets out a non-exhaustive list of elements to include in the design and operation of a digital identity ecosystem.

Austria

Austrians can now create a mobile driving license (mDLs) on their smartphones after the technical infrastructure is finally ready, laying the foundation for further digital credentials, according to the Federal Ministry of Internal Affairs.

“ID Austria has not only developed a state-of-the-art proof of identity, it is also an important contribution to cyber security in Austria,” said Minister of the Interior, Gerhard Karner, at the mDL launch.

“This prevents identity theft and puts a stop to cybercrime. The digital driver’s license as the first digital ID in Austria is a milestone on the way into digitization. I invite you – use the ID Austria and use the digital driver’s licence.”

Citizens and residents are encouraged to download the eID (eAusweise) smartphone app and then register for digital ID and upload their existing Austrian physical (plastic) driving license, for free. Face recognition or fingerprint is required, but the announcement does not clarify why. Media coverage suggests this is to open the app, rather than for biometric verification at sign up.

United States

AuthenticID has the launched Identity Pass digital identity wallet. Identity Pass is a single tool to store and manage an individual’s identity verification documents, including identity cards, drivers’ licences, and passports.

The Identity Pass app replaces the need for physical IDs and allows consumers to provide proof of identity digitally and in the real world instantly, with control over who they share information with, and no passwords to remember.

The Identity Pass app can be utilized for passwordless login, multi-factor and step-up authentication, age verification, KYC/KYB compliance, and more, while fulfilling all government security requirements.

Global

Banking giant JP Morgan announced it is developing a digital identity offering empowering users to “choose identity credentials you want to share throughout your interactions online, across the web3, the metaverse, DeFi, and beyond.” The solution is not a live product offering and there are no guarantees the bank will launch it, JP Morgan said in a disclaimer.

The digital identity offering is powered by JP Morgan’s Onyx, one the first bank-led blockchain platforms allowing users to trade value, information, and digital assets. The platform processed more than $300 billion in short-term loans since its launch in December 2020 through June 2022.

United Kingdom

Global identity verification provider ID-Pal today announced it is a government-certified identity service provider (IDSP) for digital right to work and right to rent checks in the UK.

ID-Pal was awarded certification in line with the UK Digital Identity & Attributes Trust Framework (DIATF).

This certification is a trust stamp for any business or government body to use a provider with confidence. As an IDSP, ID-Pal allows organisations to perform digital right to work and right to rent checks to comply with changes to government guidelines that took effect from October 1, 2022.

Japan

Japan has detailed it plan to phase out public health insurance cards in favour of linking the services to a digital ID card.

Beginning in Autumn 2024, existing photo-less national health insurance cards will no longer be accepted, officially replaced by My Number Cards.

The My Number Card, which has been around since 2016, incorporates a microchip and photo, and links to other credentials like driving licenses and tax department accounts, reports The Register.

Cardholders use a PIN and the card to access services such as Mynaportal – an online system for registering and changing bank accounts, viewing health insurance information, checking pension info, and other related services.

Turkey

Turkey is planning to launch a central bank digital currency (CBDC) that will be integrated with the country’s digital identity system and the Central Bank of the Republic of Turkey’s FAST instant payments service.

The integration will form part of the next phase of the country’s Central Bank Digital Turkish Lira Research and Development Project that will also include testing the use of the CBDC for payments as well as for wholesale banking transactions.

Turkey’s Presidential Strategy and Budget Directorate announced the plans in the Presidential Annual Programme for 2023, which stated that a “blockchain-based central bank digital currency will be put into practice”, according to a CoinDesk Türkiye report.

The Central Bank of the Republic of Turkey (CBRT) launched the first phase of its CBDC project in September 2021 when it announced plans for limited closed-circuit testing of a prototype digital Turkish lira network prior to “advanced phases of the pilot study that will reflect broader participation”.

United States

The National Institute of Standards and Technology (NIST) is due to release its first update to its digital identity guidelines in five years.

The updates to NIST Special Publication 800-63 have been in the works since 2020 and respond to changes in the cybersecurity threat landscape, new technologies and concerns about equity, according to an presentation from NIST officials at an October 27 meeting of the agency’s Information Security and Privacy Advisory Board. They also incorporate lessons learned from the pivot to digital services at the onset of the COVID-19 pandemic.

The forthcoming draft will include biometric performance requirements designed to make sure there aren’t major discrepancies in the tech’s effectiveness across different demographic groups. NIST research published in 2019 found that most facial recognition software products are less effective at identifying people of color than white people when it comes to one-to-one matching.

The update will also increase identity proofing options that don’t require facial recognition, according to slides shown at the presentation.

Global

In 2021, 322 million mobile identities were in circulation globally. By 2027, this figure will have more than tripled to 1.02 billion, states global technology intelligence firm ABI Research.

“The COVID-19 pandemic set the acceleration of mobile identity technology’s adoption in motion. By solving pain points relating to physical contact in identity applications, the potential implementation of mobile IDs was brought more so to the conversation while also aligning with the trends of growing digitalization strategies from governments,” explained Lucas Stewart, citizen digital identity analyst at ABI Research.

Such strategies are exemplified in Europe through the European Commission’s aim to further digitalize identities under the eIDAS revision in 2023. “This marks a significant leap in mobile identities, where potential programs like the coming European Digital Identity Wallet may inspire and emerge, seeing substantial market growth,” said Stewart.

Global

Experian and Prove Identity has announced a global partnership to further financial inclusion through advanced identity verification technology. The partnership, which is now live, has two goals.

One is to enable companies to extend their financial services to more consumers, including traditionally underbanked populations such as consumers who might not already have a credit file or substantive data history, while also mitigating digital fraud such as synthetic identity fraud.

The second is to create wider access to faster, easier and more secure experiences for more consumers. Traditionally, underbanked populations have had to default to “slow lane” digital experiences. Prove and Experian’s new partnership will extend “fast lane” digital experiences to more consumers.