Proving digital identities clearly through artificial intelligence.
The term “digital identity” is no longer a strange word for most companies. Nowadays, companies are more and more challenged to efficiently manage the digital identities of their numerous users. Unfortunately, cyber criminals are enriching themselves on the digital identities of real people and posing as them on the World Wide Web. Especially in the high-involvement product segment, the unique proof of identity of a person is indispensable for almost all companies. This article covers the theoretical background of the concept of identity and evaluates technical implementations of digital identity checks.
What is a digital identity?
Every person has a unique identity. So-called identity attributes define identities and make them unique. In real life, identities are described by means of attributes such as character traits, appearance, gestures or general personal data. Attributes of this kind no longer exist as soon as a real person moves around on digital platforms in the World Wide Web. People have numerous digital identities, one for each platform (social networks, online shops, forums, account variations, etc.). Digital identities, in contrast to their real counterparts have electronically recordable identity attributes. These are divided into three categories:
- Possession: IDs, cards, terminals, chips, papers, …
- Knowledge: Names, dates of birth, addresses, client numbers, PINs…
- Inherence: Biometrics, genetics, facial expressions, gestures, …
Possession attributes are considered the most insecure to date, as material objects such as ID cards or papers can change ownership very easily and identity thieves have an easy job of it. Knowledge attributes can be communicated and thus fall into the wrong hands. The safest way to disclose attributes of inherence is to declare them, as they are bound to a specific person, can hardly be shared and can only be replicated with great effort.
For a successful, digital authentication of identity on the Internet, identity attributes are assigned to a specific person. One of the most common processes of this kind is known to many as the “username + password” on request. The correct entry of these knowledge attributes is then assigned to the real person so that authentication can take place. This process is described as digital or electronic identity verification.
Did you know?
Even devices can have digital identities, within the framework of IoT (Internet of Things). Alexa, Cortana and Siri are just a few of the famous examples of devices that have their own identity attributes and can be integrated into processes. Also, in the smart home and office area, electronic devices are used which are authenticated by their device ID alone and can pass a digital identity check.
Due to the rapid development of cybercrime, it is important for companies as well as for everyone to protect their data and to act proactively. Digital identities today should meet individual security requirements, as criminals can use a stolen digital identity to gain entry, access or access to secured resources or impersonate someone else if the theft is successful. Depending on the size of the company, the resulting damage can quickly run into millions.
How are digital identities protected?
There are numerous measures for the protection of digital identities. Depending on the confidentiality of the data to be protected, which can be stolen when accessing an identity, different complex authentication options are used. In addition, specific misuse scenarios must be taken into consideration, such as the duplicate creation of digital identities, the intentionally false depositing of personal data or the violation of data protection law when processing personal data. Each of the authentication methods has specific advantages and is selected differently depending on the application.
|Classification Normal Confidential of data||Normal||Confidential||Personal||Sensitive|
|Description||General data||Commercial data (accounting, strategic plans, etc.)||Identification information (e-mail address, date of birth, address, biometrics, etc.)||Sensitive information (political opinion, religion, health, at contract signing, etc.)|
|Recommendation for access||Easy authentication||Password less authentication||2 Authentication factor (passwordless)||Unique identification by badge and biometrics|
|Current authentication options||Password, Social Login, WebAuthn||TOTP, IVR, biometrics, SmartCard, client certificate, Smart Push||Social login + Face ID, password + IVR, etc.||By post office, video chat, AI|
|Cyber risk||Medium-Low||Low||Very low||Almost none|
How to verify digital identities clearly?
The progressive digitization of all branches of the economy is also evident in the Digital 20’s in very data-sensitive sectors such as the financial and banking sector, which continuously have new requirements regarding the keyword “know your customer”. The demand for user-relevant and convenient identification solutions is therefore becoming ever greater. The most innovative possibility of digital identity verification is identification using artificial intelligence and machine learning. Smart, digital identity verification is replacing older procedures due to the added value for customers and the numerous advantages in the future.
|Speed||Time frame||Required technical knowledge||Cyber risk||Data protection||For companies||For users|
|Mailing address||Travel times, queues, service staff (30 min +)||Limited to opening hours||None||None||GDPR- compliant||€€€||None|
|Videoident||Completely digital, service staff (5-10 minutes)||Tied to service employee||Internet, camera-enabled device, support by service staff, app obligation||eIDAS compliant||GDPR- compliant||€€€||None|
|Identification through artificial intelligence||Completely digital, automated (max. 2 minutes)||24/7, Automated||Internet, Camera-enabled device, Automated, convenient process||eIDAS compliant||GDPR compliant, automated transfer into systems||€||None|
Why digital identity verification?
To prove the correctness of the digital identity and compliance with the real identity clearly, a digital, unambiguous procedure, such as the verification of an identity document, is required. Due to the flexible procedure and the extremely high user comfort, an independent digital identity verification maximizes the conversion rate. The consumer is not torn out of the individual customer journey and does not have to move cross-media. The reactive nature of the recipient’s information intake is completely avoided. The user is provided with a concrete increase in value. The result is satisfaction and loyalty.
The above-mentioned advantages are especially given by a digital identity check using artificial intelligence.
- + Specific AI algorithms ensure highly secure authentication
During the identification process, the artificial intelligence compares biometric aspects of the ID with the corresponding real person and checks the ID for security features that confirm the authenticity of the document.
- + A unique, comfortable user experience is created
There is no need for contact with a second person because the process is completely automated due to machine learning. Thus, the verification for e.g. the conclusion of a contract can be carried out at any time, any place and on any camera- and internet-enabled device.
- + Process costs are significantly reduced
The costs per identification case are significantly lower than with previous procedures, outsourcing of external labour can be resolved and internal employees experience an increase in work efficiency. The extraction and maintenance of personal customer data can be easily provided with the help of well-thought-out interfaces.
- + Digital identity verification using modern AI with the cidaas ID Validator is both eIDAS and GDPR compliant
Which applications exist for digital identity verification?
Financial service provider
Financial service provider
Fast identity verification, for instance for the flexible opening of accounts, the safe transfer of large sums of money or the taking out of loans.
Conclude or extend insurance online contracts conveniently, quickly and secure.
Digital identity proof in form of a driver's licence for example rental cars, car sharing or leasing. Mobile has never been so safe!
No more fake profiles! Identity checks for applications, proof of age for entertainment content and leisure activities with age restrictions (e.g. gambling or age-restricted film content).
Online verification for students for applying for digital exams or to enrol for the first time.
Conclude credit agreements easily and conveniently during the ordering process and indulge in dream products. Also, the conclusion of mobile phone contracts or the creation of customer and shopping credit cards is no longer a problem.
The cidaas ID Validator – the Digital 20’s AI innovation
An innovative solution for digital identity verification represents the cidaas ID. Validator With the help of artificial intelligence and machine learning, users can be identified in a most comfortable, secure and unique way. Thus, highly sensitive data can be comprehensively secured and processed. The ID Validator works in three steps.
- Face recognition: Scan of biometric data and verification of the authenticity of the person.
- ID card scan: recording the information and biometric data. Check for authenticity and validity.
- Intelligent analysis: comparison of the collected data and seamless, GDPR-compliant transfer of the data to the company’s systems.
Conclusion and outlook – The future of digital identities
The management of customers’ digital identities represents already a central element in all companies and should be integrated as an integral part of business processes. The digitalization megatrend has produced digital identities that can already be so-called microtrends. In order to reach new customer segments and maintain existing customer bases, trends should be picked up – especially with the trend “digital identities”, an „Identity and Access Management System“ can provide significant support. For this reason, the implementation of such a system can be regarded as a priority one. The following points represent the focus topics of an IAM solution.
- Data security through modern authentication procedures
- Simple, convenient and secure onboarding for all channels and services due to SSO and 2FA
- GDPR-compliant consent management
An Identity and Access Management System can be a basis for the maintenance of all digital identities of different stakeholders (customers, employees, and suppliers). With a modern Identity and Access Management solution, data security, user comfort, and user insight management can be combined on one platform. It opens the doors for efficient and sustainable management of millions of users.
identity is everything.