GPSJ Autumn 2024 ONLINE - Flipbook - Page 29
IDENTITY VERIFICATION
GPSJ
Predictions for identity verification solutions
in the UK: a look ahead to 2025
By Grigory Yusupov, Regional Director, UK & Rest of World (RoW) at IDnow
This year, the identity
veri昀椀cation landscape in the
UK is set to experience major
shifts as technologies develop
and regulations evolve.
Grigory
Yusupov
Driven by the latest technological
advancements impacting identity
veri昀椀cation, including digital wallets
and generative AI, alongside
regulatory changes, there are
many trends that will reshape how
individuals prove their identities
online and how organisations
protect themselves against fraud.
Grigory Yusupov, Regional
Director, UK & ROW at IDnow,
explores what 2025 holds for
identity veri昀椀cation solutions in
the UK – and the critical role they
will continue to play in our digital
environments.
Digital identity wallets: a
new standard in the UK and
beyond
By 2026, Gartner projects that
over half a billion smartphone
users will be utilising a digital
identity wallet worldwide.
Across Europe, digital identity
wallets are rapidly gaining traction
due to regulatory initiatives,
such as eIDAS 2.0 – the second
iteration of the European
Union’s Electronic Identi昀椀cation,
Authentication, and Trust Services
regulation.
While the EU Digital Identity
(EUDI) Wallet is expected to
launch by 2026-2027, the UK is
not required to implement eIDAS
2.0, meaning UK citizens will not
have access to the EU’s digital
wallet.
So, though eIDAS 2.0 bene昀椀ts
EU citizens and businesses by
enhancing pan-European digital
trust and identity veri昀椀cation, it
could introduce added complexity
for the UK.
This year, we should begin
to see how closely the UK
government plans on following
the EU plans and processes. The
key for the UK will be to maintain
as many frictionless and secure
processes as possible, while
keeping pace with the regulatory
landscape in the EU.
The continued rise of AIdriven fraud
Increasingly sophisticated
technologies, particularly
generative AI, will continue to
pose new challenges for identity
veri昀椀cation.
Another Gartner report
outlined how deepfakes can
now ‘mimic facial expressions,
blinking patterns and even subtle
micromovements with uncanny
accuracy, confounding even
the most advanced detection
algorithms.’
At the same time, worryingly,
the latest IDnow Fraud Awareness
Report revealed that almost half
(47%) of Britons said that they do
not know what deepfakes are.
In response to the challenges
posed by generative AI and
deepfakes, the identity veri昀椀cation
industry is adopting a multilayered
defence strategy.
Advanced biometrics and
solutions to document veri昀椀cation,
such as employing near-昀椀eld
communication (NFC), are being
explored to combat the risk posed
by AI-powered fraud.
Stricter regulations and
compliance: AMLR, NIS2,
and more
The UK’s 昀椀nancial institutions
are under pressure to keep up
with the stringent compliance
requirements being implemented
across the EU.
To align with the EU’s push for
stricter anti-money laundering
(AML) standards, the UK is
adopting robust regulations to
mitigate fraud risks, particularly in
the 昀椀nance sector.
New regulations such as
AMLR and NIS2 will impact UK
businesses with cross-border
operations, much like the roll-out
of pan-European digital identity
wallets as a result of eIDAS 2.0.
For organisations operating in
both the UK and EU, it will be vital
to engage with a trusted identity
veri昀椀cation partner that possesses
cross-border expertise.
The impact of APP fraud
reimbursement on antifraud measures
With fraud cases becoming more
complex, UK authorities have
been cracking down on advanced
scams, such as Authorised Push
Payment (APP) fraud.
The new APP fraud
reimbursement rules came into
e昀昀ect in October 2024 to better
protect consumers from being
defrauded when using faster
payments.
There is now growing
pressure on organisations to
take preventative action against
all types of scams, not just APP
fraud.
Cifas’ latest research highlights
the rise in cases of facility
takeover, identity fraud and
misuse of facility: more than
over 127,000 cases of identity
fraud were recorded between
January-June 2024 – a 4%
increase on 2023. This was largely
driven by signi昀椀cant increases in
impersonation fraud in relation
to mobile phones (up 102%),
personal store cards (up 59%)
and personal current accounts (up
19%).
Now, more than ever,
organisations need to innovate
and educate to keep one step
ahead of the fraudsters. As such,
we should see the deployment of
more robust identity veri昀椀cation
solutions to reduce fraud,
providing consumers and
businesses with a safer digital
environment.
In conclusion
This year, the UK’s identity
veri昀椀cation landscape will be
shaped by innovative technology,
including digital wallet solutions,
while continuing the 昀椀ght against
generative AI and deepfakes.
Under the magnifying glass
of regulatory scrutiny and
complex fraud schemes on
the rise, organisations will
need secure, adaptable, and
regulation-compliant identity
veri昀椀cation solutions. This will aid
UK businesses in safeguarding
against evolving threats while
navigating new industry
challenges.
GOVERNMENT AND PUBLIC SECTOR JOURNAL WINTER 2024/2025
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