Study shows optimism for digital IDs in reducing fraud despite security concerns

Regula’s recent study finds that the majority of organizations worldwide anticipate a substantial decrease in identity fraud following the adoption of digital IDs.

The report indicates a prevailing optimism among businesses regarding the efficacy of digital IDs in enhancing security measures and curbing identity-related fraud. The findings suggest that organizations are increasingly recognizing the potential of digital identity systems to provide reliable verification processes, thereby mitigating risks associated with traditional identity verification methods.

Globally, the largest group of respondents, 27 percent, expects a reduction in fraud of 20 percent to 29 percent. Additionally, 25 percent foresee a decrease in fraud of 30 percent to 39 percent, while 14 percent expect a reduction of 40 percent to 49 percent.

“The results of the Forrester Consulting study prove that there is a strong belief in the effectiveness of digital IDs in enhancing security measures. That is true to a certain extent. For example, by verifying the authenticity of issuing certificates and digital signatures, it is rather reliable to prove the authenticity of a digital ID,” says Ihar Kliashchou, chief technology officer at Regula.

“But no form of ID, physical or digital, can ensure that you are dealing with a genuine person or even a person at all. Sophisticated identity fraud, including deepfakes and other AI-generated threats, is evolving rapidly, and to address this challenge, we need continuous advancements in fraud detection technologies and adaptive security measures.”

Other key findings from the report include 42 percent of companies globally are ready to implement digital ID, and results show that digital IDs are not going to replace physical documents for now.

Digital ID adoption challenges

Despite the anticipation of a decrease in identity fraud following the adoption of digital IDs, the report highlights potential negative impacts identified by respondents. The most significant concern, noted by 50 percent of respondents, is the increased risk of data breaches and cybersecurity threats, emphasizing the critical need for robust security measures in digital ID systems.

44 percent expressed fears about privacy, worried that digital IDs could enhance surveillance and data tracking. Moreover, 35 percent pointed out the potential for technology failures and identity theft.

Article Topics

consumer adoption  |  digital ID  |  fraud prevention  |  identity verification  |  market report  |  Regula