Stay safe: using digital identity to combat fraud identity theft

We were delighted to welcome a room full of experts from across the fraud community during the launch of our Cifas Fraud Pledges in May 2024 – reforms aimed at placing counter-fraud firmly on the Government agenda. One of those in attendance at our event in Portcullis House was Jonathan Evans, Country Manager at Digidentity. Here’s why he believes digital identity has a vital role to play in relation to our third ‘pledge’ – enhancing support for victims of fraud. 

The small print on the invitation stressed the importance of arriving early to allow time ‘to clear the airport-style security’ at the visitors’ entrance. They weren’t wrong. The queue wrapped itself around Portcullis House making me nervous – I hate being late. I was the last to arrive. Finding the last seat, right at the front, just as the discussion began on ‘The UK Fraud Epidemic – Turning the Tide on Fraud and Scams’.

There was palpable engagement among the attendees as Dame Margaret Hodge introduced the session, marking the launch of  Cifas’ 2024 Fraud Pledges. The debate was full of positivity and energy, but it was clear that many in the audience were exasperated by how out-of-hand the UK’s fraud problem has become. It seemed to me that everyone in the room had a story of how fraud had affected them personally – stories which underline the importance of Cifas’ work and their fraud pledges. One in particular caught my eye: Pledge 3, which focuses on support for victims of fraud and identity protection and repair. 

History is littered with stories of fraud and identity theft. From Greek sea merchants  Hegestratos and Zenosthemis to Charles Ponzi. For the contemporary fraudster though, the digital age offers not just greater scale of opportunity but anonymity. No longer does the fraudster require the brazenness of famed grifters like Frank Abagnale or Anna Delvey. They just need an internet connection and a VPN. 

Digital identity as part of the solution 

Cifas’ 2024 Fraudscape 6-month update shows that identity fraud cases continue to grow and accounted for 59% of filings between January-June 2024. 

Consumers are worried, but unsure about how to take steps to protect themselves. Digidentity’s latest ‘The Evolution of Identity’ report reveals 84% of people in the UK are anxious about the amount of data they have shared online. However, just 27% are actively taking steps to protect themselves. 

Interestingly, the gap between awareness and action is even wider amongst younger generations. The report shows that digitally savvy Gen Z has done the least to protect their data online. Just 22% of 16–24-year-olds take proactive measures, compared to 30% of those aged 55+, despite 76% of Gen Z being worried about their online footprint. 

I work for a company called Digidentity in the related area of digital identity, which is a fundamental instrument in the resistance to the fraud epidemic. Since 2023, Digidentity has been working with Cifas on a new consumer app that seeks to inform and protect citizens from fraud and identity theft. Identity verification is the cornerstone of the initiative. Fundamentally, the app will give users control over the use of their identity and stops identity fraud before the damage is done. It will provide important, emotional reassurance that the user is taking practical steps to protect their finances and ultimately their well-being. 

In practice, the app sends a push notification to an individual’s mobile phone asking them if they are the person making an application for a financial product or service. It has been in testing with additional functionality due to be rolled out over time. It will not only help protect users but also inform, advise and educate them, something we know is key to tackling the epidemic and bridging the gap between worry and action. 

A business responsibility 

Cifas’ Fraud Pledge 3 talks about the role of business in the fight against fraud. While some responsibility lies with the user to keep the information they share online safe, businesses can’t ignore their responsibility to equip themselves with the necessary tools to protect customers’ identities from the outset and meet their own compliance obligations.  

Having worked in the industry for over a decade, it is fascinating to me to see the apathy some businesses show towards adopting new technologies. Especially those that can make tangible differences to their own fraud exposure and compliance obligations.  

It’s clear to me that the barrier isn’t technology. The tools are there. They exist. The challenge is winning hearts and minds. That is convincing decision-makers in industry to do something different. This is where my sector needs to shoulder some of the burden. We haven’t been effective in explaining and convincing service providers of the benefits of digital identity and fraud prevention technologies.  

The future 

Technology is constantly evolving, and the need to improve security measures must keep pace. There are plenty of emerging technologies in this space that will help. Decentralised Identity (DID) and digital wallets will empower the user; AI will create new intelligent fraud protection measures, like real-time monitoring and predictive analysis, and biometric authentication is gaining momentum despite our report showing that only a third of people have actually instigated multi-factor authentication.  

Fostering partnerships will be crucial. Businesses must prioritise innovation in security solutions, while consumers need to be vigilant about potential risks. This collaborative approach ensures continuously evolving safeguards that can keep pace with the ever-increasing speed of emerging threats. 

Hopefully, there will be a follow-up event in May 2025. Hopefully I’ll be invited. And if I am I’d like to hear of tangible progress made against all of Cifas’ five fraud pledges, but especially Pledge 3. Next year I’ll leave more time to queue. Or perhaps they will have instated an identity and authentication system at the door that will accelerate access and enhance security? 

Want to learn more about digital identity and fraud prevention technologies? Book a meeting with Digidentity’s experts: sales@digidentity.com

Keep checking back on the latest regarding the identity fraud protection app via Cifas’ social media channels (LinkedIn and X/Twitter).