Five key identity verification trends shaping 2024

As technology reshapes the landscape for both businesses and fraudsters, is paramount. By keeping informed and staying ahead of the latest innovations in identity verification you can effectively stay ahead of criminals and stop money laundering, terrorism financing and other financial crimes in their tracks. 

So, what can you expect in the realm of identity verification in 2024? How can businesses protect themselves against the ever-evolving fraud risks?

Here are the top trends expected to shake up the identity verification industry in the coming year.

1. Deepfakes will fuel more liveness checks

AI-generated deepfakes are going mainstream in 2024, blurring the line between reality and fiction. The surge in hyper-realistic synthetic media poses a threat to everyone, from politicians and celebrities to everyday consumers. 

It is now one of the most prevalent AI-powered fraud techniques, with deepfake use rising by 1530% in 2023 compared with 2022 in Asia-Pacific (APAC).

The most effective defence against deepfakes lies in the very technology that facilitates them. AI can help generate deepfakes, but it also can help identify them automatically. 

Powered by AI  machine learning, liveness checks can help businesses determine when a photo is real or fake. 

An active liveness test may ask the user to do specific actions, such as smile or look to one side. A passive liveness check identifies and extracts key facial biometric landmarks to match the selfie against the ID document photo. 

Such checks make it possible to determine whether the user is real and present, not synthetic, or computer-generated. And like the tools businesses are already deploying to automate identity verification, liveness checks can run in the background without burdening staff or hampering the customer experience. 

2. Consumers want to protect their digital privacy

Consumer trust is rapidly dwindling. Research from CHOICE in 2023 revealed 65% of people don’t trust businesses to use their data responsibly and in their best interest – up by 25% from 2022. 

Unsurprisingly, Australians surveyed in 2023 saw data breaches as the biggest privacy risk, which is unsurprising, with almost half of those surveyed saying they were affected by a data breach the year before.

Consumers are increasingly vigilant about their digital footprint and privacy demanding transparency and accountability from businesses regarding data usage and protection. 

For businesses to build and enhance trust, 65% of Australian respondents expect clear and understandable information about data usage. 

In December 2023, the Australian Government passed legislation to ensure identity verification services are secure and protect the privacy of Australians. Businesses must implement secure and privacy-compliant identity verification to maintain customer privacy and data security. 

This means collecting personal information while preserving trust, protecting customer information, and complying with regulations. 

3. AI and machine learning will become standard

The only way to prevent increasingly creative and sophisticated fraud attacks is for organisations to stay one step ahead – which is precisely what AI and machine learning can do. 

The benefits AI brings to fraud and AML compliance were in the spotlight in 2023, and the adoption of AI-powered identity verification and fraud detection tools will continue to grow. 

Its ability to evolve and learn is what makes AI and machine learning so powerful in fraud detection. Instead of operating based on set protocols, it can learn from its historical transaction data and fraud patterns analysis and adjust its rules to stop threats it may never have encountered before. 

The more it learns and becomes familiar with the organisation’s systems, transaction patterns, and fraud techniques, the more effective the machine learning AI model becomes in detecting and preventing fraud. 

For example, GBG Alert is an early fraud detection solution designed to detect fraud at onboarding, in real-time. It has achieved up to 89% accuracy in detecting identity takeover, money mulling and other fraud events. 

As machine learning is a dynamic tool, constantly learning and adapting, GBG Alert improves over time as it encounters new data. 

4. Digital IDs are on the cards (again)

Some countries, for example, Belgium, Canada and Singapore, have started to create their own digital IDs, and now Australia is considering following suit. In its final sittings for 2023, the Australian Parliament passed the Identity Verification Services Bill 2023, which provides some important protections for privacy and other rights. 

In December 2023, the Australian Government proposed the Digital ID Bill 2023, which will provide rules for a major expansion of Australia’s digital identification system. This system will allow individuals to verify their identity online, like a digital version of physical identification documents. 

New South Wales has long been Australia’s leading jurisdiction in this area, announcing its Digital ID program in April 2022 and working to put in place the key elements of what could become a world-leading digital ID system with solid community safeguards.   

5. Evolving global regulatory landscape

Regulatory frameworks are constantly evolving to protect consumers and businesses. According to its 2024 Regulatory Priorities, AUSTRAC will increase its regulatory activities in the following sectors:

  • Digital currency exchanges (DCEs)
  • Payment platforms
  • Bullion
  • Non-bank lenders and financiers

This focus results from rapid and significant growth, as well as concerns about compliance, in these sectors.

In addition, the “Tranche 2” reforms will expand AML/CTF regulatory obligations to non-financial professions, including lawyers, accountants, tax professionals, real estate, and precious metals and stones and art dealers. 

Australia is currently one of only three countries that have committed to FATF recommendations but have not enacted AML/CTF regulations for these professions.  

Another significant change is for online wagering businesses. Under the National Consumer Protection Framework for Online Wagering, Australian Governments have implemented customer pre-verification for online gambling accounts. 

AML/CTF Rules have been amended to strengthen the identity verification process for online gaming and wagering service providers. From 29 September 2024, all providers must complete the customer identification procedures before creating an online gambling account or providing any designated service.

It’s critical to understand what’s happening globally, too. Businesses need to stay on top of what’s expected of them in the countries in which they operate. 

With ever-changing regulations, flexibility and adaptability is the key to staying ahead. You need to know that your processes and technologies can adapt to ensure you remain compliant without adding unnecessary hurdles to your customer experience. 

Choosing a configurable and scalable identity verification solution means you can tailor AML/CTF processes to meet your business and compliance needs. 

Stay ahead in 2024

Do you have the tools to enhance your identity verification efforts in 2024? Request a demo to explore and learn more about the comprehensive features of GBG’s end-to-end identity verification solutions.

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Why choose GBG?

Here at GBG, we help you onboard more genuine customers and stay compliant with fast and accurate identity verification. Regardless of your business size or industry, you can tap into powerful global verification solutions to keep bad actors out and protect your business.

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