The document discusses the increasing risk of digital identity fraud due to the rise of online business models and the impact of AI on identity security. It highlights various sectors vulnerable to fraud and how AI technologies, such as real-time monitoring and biometric authentication, enhance security and protect against identity theft. Ultimately, it emphasizes the crucial role of AI in safeguarding digital identities and preventing cybercrime.

1. How AI is impacting digital identity security?
There is increased potential for identity theft and cybercrime as more businesses move their
business models online and use new technologies. The Federal Trade Commission (FTC) predicted a
loss of $13.4 million to Covid-19 frauds as of April 15, 2020, therefore the proliferation of Covid-19
has only made it worse.
Because of this, protecting one's online identity is more crucial than ever. Additionally, identity
identification is entering a new age. The usage of artificial intelligence (AI) with biometrics has
enabled consumers to benefit from more secure procedures that are also more efficient.
Artificial intelligence enables zero-trust identity
This market will once again migrate to zero-trust identity (ZTI) with the inclusion of AI to digital
identification. Because businesses want to utilize technology to ease the shift to hybrid work, zero
trust is undoubtedly a hot issue.
The majority of zero trust operations take place at the network layer, however this presents
challenges since it is simple for malicious actors to elude detection. The digital identity is followed
when zero trust is applied in identity.
Maler used the recently announced AI/ML-based Autonomous Access solution from ForgeRock as an
example. All of the signals connected to a user's digital identity are processed in order to either grant
them smooth access, step in with authentication when necessary, or prohibit them when they are
fraudulent.
Industries under threat of digital identity fraud
The following are some of the key sectors most vulnerable to digital identity fraud and the reasons
they should use cutting-edge AI solutions:
• Financial service providers: To open accounts and transfer money securely.
• Automobile industry: To safeguard private data, such as driver's licenses.
• Insurance: The ability to securely read insurance contracts online and do insurance-related
research online.
• Entertainment: To ensure there are no phony profiles and that rules, including the minimum
age requirement, are followed.
• E-commerce: To guarantee the security of credit services, payment methods, and personal
profile information.
• Education: Verification of students using online resources and taking online tests in the
educational sector.
How AI Secures Data and Identities?
Digital identity fraud may have an impact on a variety of companies, markets, and people. There are
several ways a cybercriminal can utilize someone's personal data if they take it. Here are a few ways
AI may aid in protecting digital identities and data.
1- Preventing identity theft

2. When it comes to confirming a person's identification, AI delivers improved accuracy and speed.
Organizations may better safeguard digital identities by utilizing AI to prevent illegal access to their
systems.
Your ID usage can be tracked in real time by specialized tools, improving AI security outcomes.
Cybercriminals have a much harder time using more complex systems that use real-time and
biometric data. For instance, face recognition, AI, and biometric data prevent identity theft since
they make it more difficult for thieves to access information by using just their credentials.
2- Protecting air passengers
In comparison to human labor, AI delivers a procedure that is more precise and efficient. AI-based
identity identification for airline passengers may result in an easier ID verification procedure. While
the technologies can offer an optimal rate of verifications, air passenger data remains safe.
3- Analyzing telecom networks
The telecom sector is experiencing substantial expansion because of artificial intelligence. Massive
amounts of data may be quickly processed and analyzed by AI to produce insightful findings.
Additionally, machine learning and AI make it simpler to create algorithms that can detect
unauthorized network activity.
These algorithms are trained to recognize typical trends from aberrant ones. As a result, they are
able to recognize and look into irregularities that can result from fraudulent activity.
4- Reducing financial fraud
One of the most pressing types of internet fraud is financial crime. AI can significantly enhance fraud
detection and safeguard sensitive data. AI can evaluate enormous volumes of transaction data,
including harmful transactions, in real time and enables more accurate data analysis.
Additionally, fraud may be instantaneously detected by advanced AI technology. By preventing
identity fraud and sophisticated misuse assaults, this can support fraud analysts in their work.
5- Biometric authentication
A multifactor authentication approach for more secure identity verification is provided by the use of
biometrics. Artificial can improve biometrics even more and support the creation of data-driven
security procedures.
For instance, AI may take the recorded biometric data and effectively evaluate and process it for a
streamlined security result if a system maintains behavioral biometric activity in a database. Any
differences that point to fraud or identity theft can then be found.
Final Thoughts
The globe can thankfully be protected against digital identity fraud thanks to AI. It is already a potent
tool in the battle against identity theft. Since AI systems can already find potential security holes in
the code even before a software application has been launched, they are quite likely to put an end to
the reign of the lone hacker.
Although AI authentication is still in its infancy, businesses can implement it by integrating intelligent
adaptive authentication, which uses location and device fingerprints to identify the user and initiate

3. MFA, biometric authentication, which uses a user's face or fingerprints to identify them, and smart
data filters, which identify identity fraud IPs, fraud domains, and fake user data, among other things.
An advanced AI defense system will be able to react in nanoseconds to stop a leak. To cut expenses
and the possibility of human mistakes, the human developer community will increasingly rely on
automatic AI code evaluations.