States should modernize identity verification to meet fraud challenge: Socure

U.S. state governments are facing major losses due to fraud, but the tools to improve the outcomes of digital interactions are already available to them, according to a new report from Socure. “The State of Digital Identity in 2024” report was published in partnership with The Center for Digital Government, based on surveys and interviews with U.S. state government leaders. It addresses the challenges that state governments are facing regarding digital identity and provides strategic recommendations aimed at enhancing the constituent experience by reducing friction.

One of the report’s key findings is that over 60 percent of constituents are eager to carry out government interactions online. However, there are reservations regarding identity verification and the prevention of fraud in these digital services.

Additionally, the report reveals that state agency leaders are facing several identity-related issues, such as regulatory and policy challenges, privacy concerns, and the integration of new systems with existing ones. Some of those issues are self-imposed, like the use of knowledge-based authentication (KBA) despite NIST removing it from the list of valid methods for identity verification.

The report’s recommendations advocate for implementing AI-driven identity verification to enhance the accuracy and efficiency of identity checks.

“State governments play a pivotal role in ensuring critical services reach the right people in an efficient and equitable manner,” says Matt Thompson, senior vice president and general manager for the public sector at Socure.

Establishing a modern identity verification system requires a proactive and layered approach to prevent fraud, the report highlights. This includes implementing a combination of methods, such as biometric verification and authentication technology, along with anomaly detection. Additionally, utilizing metrics and key performance indicators for continuous tracking and assessment of the system’s performance is important.

“As fraud techniques evolve, state technology leaders will continue to face new challenges when verifying identity online,” Thompson adds.

The Florida Department of Economic Opportunity (DEO) case study demonstrates how states can improve their identity verification processes by utilizing AI and machine learning technologies. According to the state’s report, 95 percent of applicants to Florida’s Homeowner Assistance Fund were automatically approved in less than one second.

Socure has also just published its inaugural Document and Biometric Identity Fraud Report, which explores the prevalence of fake government-issued IDs and the tactics, including AI and deepfake tools, used to deceive traditional identity verification methods. The report identifies document image-of-image, or document presentation attack, as the most common fraud signal detected.

Article Topics

biometrics  |  digital government  |  digital identity  |  identity verification  |  Socure  |  USA