Anti-Money Laundering News and Information

The New Currency: Identity

Nothing is as fundamental to human beings as identity. Our identity is who we are: a combination of personal history, behaviors and beliefs, and a bundle of cultural, family, national, gender, or other integrity. However, we understand it, identity always matters.

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Where Do We Use Identity In Daily Life?
Identity is our most valuable data, but we use it every day and everywhere. We use our identity information in our shopping even for buying the coffee of the day or plane tickets. But how risky is it for us to use this information continuously?
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For example, we assume that you connect to WI-FI in the restaurant where you are eating dinner. If the restaurant system does not comply with the required AML regulations, third parties can access your identity and passwords.
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Digital identities are already permeating our lives. As Fourth Industrial Revolution technologies such as the IoT, artificial intelligence, and self-driving vehicles advance, digital identities will too. With change accelerating, identity systems must develop while keeping value to individuals as their focus.
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4,833,521,806 people are using the Internet in the world. In addition to this internet usage rate, more than half (56%) of the Internet think that total privacy is impossible in the modern digital world, according to Kaspersky’s report. With nine out of consumers (89%), the Internet has become inextricably linked with what we do, from shopping to watching movies, socializing, and banking, showing our next step. Is it entirely safe to use the Internet at this rate?
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Kaspersky’s research suggests how one in three (32.3%) can protect their orders, while some don’t have enough strength to stand up to privacy breaches. Worryingly, one person (13%) lost interest in how they could further improve their privacy. Also, According to the 2019 Identity Fraud Study from Javelin Strategy & Research, the number of consumers who were victims of identity thefts is 14.4 million in 2018.
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There are five most common types of identity thefts; Credit card fraud—new accounts, Miscellaneous identity theft, Mobile telephone—new accounts, Business or personal loan, Auto loan, or lease.
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How Can Individuals Protect Themselves From Identity Thefts?
  1. It must be separated from Identity Access Management; An identity solution must provide identity to multiple, distinct, authorization, and access management solutions. Access management must consume identity and authority from various sources.
  2. Identity is not just about people; The identity must include all objects that should describe themselves. It includes people, devices, code, organizations, agents.
  3. Federations of the current IAM system will not scale; Technically challenging, n-factor problem, transitive trust problem, “reliable claim” based solutions will provide scalability and flexibility.
  4. Strong identities are the key to trust and collaboration on the Internet; -Lack of strong identity prevents adoption – people work with personas -Strong, anonymous, fundamental identity is key – people must have their own core identity -people should be capable of controlling their own identity – fails to raise individual characters to a so-called core
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What Can Companies Do To Protect Their Customers’ Data?
  • Keep regulations up to date. Policy-makers should keep pace with the evolving digital identity landscape to shape laws and regulations that enable innovation and overcome hurdles to adoption while safeguarding data, privacy, and other constitutional rights. Identity systems will oblige new legal and regulatory frameworks for interoperability, new technologies, and more.
  • Operate efficiently. As new systems appear, designers and policy-makers need to watch out for overlaps and duplicated efforts that could raise costs and inefficiencies.
  • Optimize user experience. As new systems compete for users, especially in the lack of shared principles and standards, designers will have to avoid siloed systems that enhance risk or hinder users’ value. They may have to offer individuals more access and manage the many identity systems in their lives.
  • Share ownership. Identity system owners currently used to fully control identities may have to adapt to shared ownership systems. The individual has more further rights, and collaboration helps identities operate across sectors and geographies.
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Applications and services that provide detailed and flexible access regardless of location will win the job. Therefore, Data is the new circle; authority is how you control access to it, And ID is what you use to provide authorization. Thus, ID is the new currency.
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published on Sanction Scanner Blog
Image by Pexels from Pixabay
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