Every day, consumers and companies generate, share and interact with data, with financial transactions, remote work, socialization and more taking place in digital spaces. Trends in digital identity verification are front and center as businesses, governments and service agencies face increasing pressure to protect sensitive personal data and prevent fraud.
As cyberthreats grow more sophisticated and new technologies provide fresh opportunities for both digital data defenders and attackers, organizations across industries are turning to innovative solutions to provide secure, scalable and user-friendly identity solutions. Below, members of Forbes Technology Council share their insights on emerging trends in digital identity verification and the implications for both businesses and consumers.
“One emerging trend is dynamic, context-aware authentication powered by knowledge graphs. Instead of relying on static credentials, this approach analyzes daily identity relationships across devices, locations and behaviors to verify users. It enhances security by reducing fraud while providing consumers with frictionless, personalized access to services, improving trust and the user experience.” – Craig Davies, Gathid
1. Third-Party Data
One emerging trend in digital identity verification is the use of third-party data sources—beyond just credit scores—to authenticate and verify individuals. This approach incorporates a wider range of data points from sources such as utility bills, social media profiles, mobile phone records and other public and private databases. – Brian Chidester, Adobe
2. Open Data
Open data unlocks entirely new opportunities. For example, in emerging markets like Nigeria and Indonesia, many people lack credit scores and don’t appear in any verified databases; therefore, they cannot access standard banking products. Open data solves this problem. There are countless similar examples in logistics, education and healthcare. – Ivan Shkvarun, Social Links
3. ‘FaaS’ Platforms
In 2024 we saw the rise of “fraud as a service,” or FaaS, platforms, giving those with no experience the ability to execute sophisticated attacks at an unprecedented rate. Our research has found that with as little as $1,000, fraudsters can inflict losses of up to $2,500,000 a month. To stay ahead of agile fraud networks, companies need multilayered strategies that include AI, behavioral analysis and robust verification systems. – Andrew Sever, Sumsub
4. Decentralized Identity Verification
Powered by blockchain, decentralized identity verification allows users to control their identity data via secure, portable credentials. It reduces reliance on centralized databases, enhancing security and privacy. Businesses gain compliance and lower fraud risk, while consumers enjoy greater transparency, control and protection from identity theft. – Sai Vishnu Vardhan Machapatri, Vernus Technologies
5. Device-Based Identities
One emerging trend is constructing a digital identity using a device that someone possesses. Today’s smart devices include large numbers of sensors, making it possible to uniquely identify a device. Since such an identity is developed based on an individual user’s behavior, it cannot be copied and is resistant to attacks. – Tushar Vartak, RAKBank
6. Biometrics
Verified biometrics, such as facial recognition and fingerprint scanning, are transforming digital identity verification by offering unmatched security and user convenience. This trend reduces fraud, accelerates onboarding and eliminates reliance on passwords. For businesses, it ensures compliance and builds trust, while consumers gain seamless, secure access to services. – Michael Engle, 1Kosmos
7. AI-Driven Behavioral Anomaly Detection
An emerging trend in digital identity verification is AI-driven anomaly detection in real-time processes. By analyzing behavioral patterns and data, AI enhances fraud detection accuracy while reducing compliance risks. This approach minimizes fraud and builds trust, all while consumers enjoy seamless and secure experiences. It’s a trend that reflects the transformative potential of AI and modern data analytics. – Suri Nuthalapati, Cloudera
8. Quantum-Resistant Cryptography
The mainstream adoption of quantum computing will significantly disrupt security practices by rendering today’s cryptographic ciphers obsolete. Bad actors using quantum computers will carry out man-in-the-middle attacks, decrypting and stealing sensitive data that is well protected today. This will start a cybersecurity race, as companies are forced to quickly adopt quantum-resistant cryptography. – Carlos Morales, Vercara, a DigiCert Company
9. Mobile Phone Numbers
While much of the focus is on artificial intelligence and biometrics, the phone number will continue to prevail as a primary digital identifier. Mobile phone numbers anchor the identities of over 3 billion people. Let’s not underestimate their power in providing a dependable, scalable solution for customer authentication, since phone numbers remain constant and consistent regardless of provider changes or physical location. – Peter Ford, iconectiv
10. Holistic Identities
A key trend in digital identity verification is leveraging a holistic view of identities. Instead of solely focusing on traditional credentials, a holistic identity encompasses the full scope of an individual’s darknet exposure, including personally identifiable information and infected device information. This empowers businesses to better assess user risks, remediate exposures and protect systems from identity-based attacks. – Damon Fleury, SpyCloud
11. B2B Identities
Third-party and supply chain risks are pushing enterprises to focus their digital identity verification efforts on business-to-business identities, which provide suppliers, contractors and customers access to internal infrastructure and applications, creating risk for both company and customer data. Securing B2B identities is a top priority to lessen the threat of this expanded attack surface. – Todd Moore, Thales Group
12. Liveness Detection
Liveness detection is an emerging trend in digital identity verification. By using AI to confirm that a person is present in real time, liveness detection prevents spoofing attacks with photos or videos. For businesses, it strengthens fraud prevention measures and builds trust, while consumers benefit from enhanced security and a seamless verification process that safeguards their personal data. – Manasi Sharma, Microsoft
13. Federated Identities
Federated identities are becoming the norm. The most ubiquitous form of federated identity is buttons such as “Sign in with Google.” For companies and educational institutions, federated identities bring huge opportunities in data protection, as they don’t have to share identifying attributes with service providers. This simplifies policies and approval processes for new applications. – Kevin Korte, Univention
14. Migration From Physical Documents
The key trend is a global migration from physical identification documents to digital credentials stored on mobile devices, such as e-IDs, mobile IDs and mobile driver’s licenses. Implications include the gradual disappearance of physical ID facilities, relative ease of use for consumers, an imminent change in identity fraud strategies, and the migration of identity fraud from onboarding to all usage points. – Dan Yerushalmi, AU10TIX
15. Passkeys; Document Rooms
Passkeys can enhance digital identity verification by enabling passwordless authentication through public key cryptography and biometrics. This improves security, reduces the risk of phishing and simplifies the login process. Also, document rooms with advanced encryption, secure communication protocols and AI-driven digital identity verification solutions can ensure documents remain tamper-proof. – Kris Lahiri, Egnyte
16. Continuous Authentication
Continuous authentication is an evolving trend that enhances security by verifying user identity in real time—seamlessly and without friction—ensuring ongoing protection against unauthorized access, as well as immediate detection of and quick response to suspicious activity. Businesses could leverage this method to reduce fraud risks, mitigate data breaches and build customer trust and confidence. – Neil Lampton, TIAG
17. Verifiable Credentials Networks
One emerging trend in digital identity verification is verifiable credentials networks. These networks allow users to securely manage digital credentials, such as academic degrees or personal information, through digital wallets the users control themselves. For businesses, VCNs offer streamlined verification processes, while consumers gain greater control over their personal data and privacy. – Anurag Agrawal, Google LLC
18. Context-Aware Authentication
One emerging trend is dynamic, context-aware authentication powered by knowledge graphs. Instead of relying on static credentials, this approach analyzes daily identity relationships across devices, locations and behaviors to verify users. It enhances security by reducing fraud while providing consumers with frictionless, personalized access to services, improving trust and the user experience. – Craig Davies, Gathid
19. Zero-Knowledge Proofs
A compelling emerging trend in digital identity verification is zero-knowledge proofs. This technology allows users to confirm specific identity attributes, like age or citizenship, without disclosing sensitive personal data. ZKPs enhance privacy and security, building trust with consumers and reducing businesses’ need to store extensive personal information, mitigating data breach risks. – Roman Vinogradov, Improvado
20. Multifactor Authentication
The overdue demise of the username and password as the lone authentication factor is imminent, as multifactor authentication methods are increasingly prevalent. Identity is the most important aspect of securing technology. Requiring additional user challenges to prove identity, such as biometrics or tokens, is critical to building trusted digital identities. – Mike Lefebvre, SEI
