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3 Digital Identity Trends Developers Should Know About

Nicholas Dewald
March 8, 2023

Welcome to the first post in our series on Identity Trends for Developers. This first article will give an overview, and the following three will dig deeper into Prove’s Digital Identity Solutions. This series will help you understand the trends we see in the Identity space, and how Prove can help you stay ahead of the game– the privacy and fraud prevention game, that is.

Digital identity is a representation of a person or entity on the internet. It encompasses various forms of online data, such as usernames and social media profiles. In this blog, we will discuss some of the most significant digital identity trends shaping the future.

Passwordless Authentication

Gone are the days of memorizing complex passwords and constantly resetting them when forgotten. True to its name, passwordless authentication eliminates or reduces reliance on the need for passwords. Instead of passwords, it uses other forms of authentication, such as biometrics or security keys. This means no more having to remember and manage a long list of passwords or worrying about them getting stolen.

Using biometrics and security keys provides an extra layer of security, making it even more difficult for hackers to access your accounts. Passwordless login is also more user-friendly and accessible for people with disabilities or who struggle to remember traditional passwords. For instance, biometrics can be used as an alternative to passwords for those who have trouble remembering them, and security keys can be used as an alternative for those with visual or motor disabilities.

Prove Auth™ delivers modern techniques that increase security and reduce friction, delivering a unified solution for passwordless login. Prove uses robust binding methods to initially register a Prove Key on the mobile device, after which that key can be used either in-app or from other channels (i.e., Desktop, Call Center, or Retail). 

Increased focus on privacy

Another trend in digital identity is the growing emphasis on privacy. With the rise of data breaches and cyber-attacks, people are increasingly concerned about their personal information being shared or stolen. Cybersecurity has infiltrated the collective consciousness of society. Customers are expressing interest in the cybersecurity of organizations where they do business. This has led to a focus on privacy-enhancing technologies such as secure identity solutions that protect personal information and give users control over their data.

As mentioned above, Prove Auth provides a passwordless login solution and can passively authenticate a user by supplying only the phone number. This allows individuals to control their PII (Personal Identifiable Information) and use your digital platform, knowing their identity is secure.

Reducing New Customer Fraud

For financial institutions, the onboarding process for new customers can be time-consuming and complicated. But what if there was a simple and convenient way to streamline this process? This is where using a phone number comes in. 

First and foremost, using a phone number as a unique identifier makes the onboarding process quicker and more convenient. Rather than having to fill out lengthy forms or provide multiple forms of identification, they only need to provide their phone number and one other piece of identifying information (date of birth or the last four of their social security number). This can be especially useful for customers who are on the go and prefer to complete the process from their mobile devices.

In addition, using a phone number as a unique identifier also increases the security of the onboarding process. With Prove’s Mobile Auth solution, you can passively verify a consumer’s phone number, or using our Instant Link, one can use a more modern and secure OTP authentication process. This adds an extra layer of security to the process and helps protect against fraud.

A phone number can also help you determine the trustworthiness of the transaction to protect against fraudulent account opening. This information can improve the customer experience. This can be accomplished using our Trust Score solution.

Prove’s Trust Score™ is a real-time indicator of a phone number’s trustworthiness. It accurately measures the real-time risk of authenticating a consumer using a specific phone number. Trust Score achieves this by analyzing and scoring daily life cycle change events, along with leveraging carrier signals and core telecom infrastructure signals, enabling Prove to manage the tenure identity behind the phone number. 

Reducing fraud and friction during the onboarding process can be accomplished using Prove Pre-Fill®. This expedites the digital onboarding process and reduces consumer friction by pre-populating a form with verified identity information tied to a phone number.  Based on the standard configuration, Prove Pre-Fill® maximizes pass rates with minimal fraud, defined as authenticating the consumer without delayed fulfillment and/or manual human intervention.  

Wrapping Up

Digital identity trends are evolving rapidly, driven by technological advances and growing concerns about privacy. Decentralization, privacy, blockchain technology, biometrics, and self-sovereign identity are the most significant trends shaping digital identity's future. As these trends continue to develop, we expect to see more secure, convenient, and user-controlled digital identity solutions emerge in the coming years.

Keep an eye out for our next post of the series, which will dive deeper into our Passwordless Authentication solutions! Please visit prove.com and see how our solutions can serve your fraud and digital identity needs.

Check out the developer blog for more blogs like this.

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