In the digital identification and verification industry, three predictions for 2024 point to upheaval, cyber tussles, and greater compliance challenges.

In today’s ever-evolving digital world, identity verification has become an essential prerequisite for various online activities.

Nevertheless, the financial services sector faces ongoing threats from diverse forms of financial fraud, particularly in light of the growing accessibility of ever-evolving AI tools. This makes the fight against financial fraud more formidable than it has ever been.

With this landscape in mind as we head towards 2024, here are three predictions from our senior executives…

The identity landscape will face a seismic upheaval in 2024

The impending recession, budget cuts, business closures, increasing mergers and acquisitions and more will continue in 2024, and we can expect to see a flight to stability and consolidation in this market as vendors are bought out, forced to go out of business and continue to streamline operations.

As a result, identity verification firms will be forced to innovate or risk losing their business

— Robert Prigge, Chief Executive Officer

Deepfakes will accelerate identity-related scams and fraud in Asia

AI is playing an increasingly significant role in enhancing organizational efficiency and automating processes. However, the flip side of this technological revolution is an alarming trend where bad actors harness AI to execute sophisticated fraud attacks.

In a recent incident in Hong Kong, a fraud syndicate utilized AI to fabricate images for loan scams targeting banks and money-lenders. This case marks the first instance where law enforcement in Hong Kong had made arrests linked to deepfake technology, and unfortunately, similar incidents will continue to occur across the region.

To stay ahead, we will see more organizations tapping into AI solutions in the fight against AI-driven cyber threats. Businesses will look to implement multimodal, biometric-based identity verification systems that can detect deepfakes and thwart the misuse of stolen personal credentials.

— Frederic Ho, Vice President (Asia Pacific)

Adopting a flexible and AI-driven compliance process will become imperative

As the Asia Pacific region continues to position itself for economic growth and offer numerous business opportunities, the rising prevalence and scale of fraud and money laundering —  combined with tighter and constantly evolving regulations — point to greater compliance challenges in 2024 for firms’ future expansion efforts.

In response to the changing regulatory landscape across different markets, we can expect to see more organizations leveraging generative AI to automate and improve the efficiency of their compliance processes, and adapt to the dynamic shifts in the regulatory landscape of each country. This can be instrumental in enabling fast implementation while ensuring cross border regulatory compliance.

— Frederic Ho, Vice President (Asia Pacific)