Networked approach to digital ID authorization presents $15.5B market opportunity

Digital identity networks that go beyond identity verification to cover enterprise identity and fraud protection needs from end to end represent a major growth opportunity worth up to $15.5 billion by 2028 in the U.S. alone.

Liminal calls these networks Identity Authorization Networks (IANs), and says in a new report that they will address a total market opportunity worth $12.1 billion in 2025.

IANs are defined as entities providing connection between real-world identities and online interactions, meeting the highest levels of assurance and taking a network approach to shared fraud signals sharing, and thereby extending high assurance to more situations. This means they offer a form of reusable identity, at least in some cases, but also layer in the ingestion and sharing of fraud signals, and network policies to act on them.

Liminal provides a breakdown of services from seven companies that it says possess key elements of IANs, including Proof, ID.me, Entrust, Clear, Visa, DocuSign and Google. Jumio and Socure are listed as two more vendors who could consider building an IAN. The first seven are compared on the basis of how many of nine key IAN capabilities they possess.

“The Market for Identity Authorization Networks in the United States” starts by enumerating the tremendous fraud losses experienced by American businesses, government and individuals. A relatively modest increase in the number of incidents since 2019 led to a 3.6-times increase in reported dollars lost to $12,5 billion in 2023. Liminal notes that the Federal Trade Commission has said the real number may be as high as $158 billion.

The fraud landscape is recognized as full of pitfalls by business and consumers alike, as AI and sophisticated fraud overcome the little resistance offered up by a system based on physical ID cards.

The liveness detection and biometrics the market has turned to help, but add friction and are imperfect. Liminal points out that an analysis of 10 top fraud prevention software vendors shows an average success rate in blocking fraud attempts of 46 percent. The vendor with the best result was successful 59 percent of the time.

Trinsic CEO Riley Hughes explains the difference between IANs and what his company is doing in terms of the axis they operate on. Trinsic seeks to extend digital ID horizontally, across providers, while IANs support the entire lifecycle of a given vertical. IANs answer questions the market is currently not well-suited to address, like: did the user agree to this transaction? This gap provides an opportunity for private-sector digital IDs to provide utility that government-issued mobile driver’s licenses or other digital IDs do not, Hughes argues.

Sections within the report cover the market challenges, reusable identity characteristics, end-market fit and opportunities for IANs.

Article Topics

authorization  |  digital identity  |  enterprise  |  fraud prevention  |  Identity Authorization Networks  |  identity verification  |  Liminal  |  market report