Understanding the Process of Identity Authentication

Identity can be difficult to prove on the internet. Just because someone says they are a certain person does not mean that is the case. This is where authentication comes in. 

Authentication helps to ensure that a person is who they say they are by providing specific information or data that is unique to the individual. Identity authentication can help to reduce fraud, and it adds an additional layer to data and information security. 

In 2020, nearly half of all Americans experienced financial identity theft, with losses climbing over $710 billion. Identity authentication can help to minimise the risk for fraud and help identify an individual on digital platforms.

Understanding identity authentication

Identity authentication matches provided information with what is stored in the database to further prove the identity of a person online. This is often done with the use of a password. The provided password is matched with the one stored in the database to authenticate the user’s identity. 

There are various types of digital authentication factors, which can include the following:

• Password or knowledge-based authentication (KBA): something a user knows
• Token, ID badge, or key card: something a user has
• Biometric data: something a user is

Authentication is different from identification and verification. Identification is a user’s identity, which needs to be verified. Authentication is a further step to prove that a user should have access or be authorised for specific rights and/or privileges. Authentication can help to establish trust online.

The benefits of identity authentication

Identity authentication can further prove that a person is who they claim to be by providing something or a piece of data that only they should have or know. In the real world, you see a person and know that they are indeed the person they say. Online, it can be more difficult to prove identity.

Cybercrime is rampant. Malicious actors steal identities and commit fraud at staggering rates of nearly 500 incidents per day, and identity fraud is one of the top forms of fraud committed. Identity authentication can help to cut down on instances of fraud and further protect a user’s identity.

Critiques of identity authentication

Identity authentication in the digital world is imperative to help protect a user’s biggest asset — their personal identity. However, it still has some flaws. 

The authentication process involves setting up an authentication factor when a user first initiates a service or creates a login. This can be faked if a fraudster has access to identity verification data, such as an ID or social security number. Then, the actual user will not be able to access the account or services as the authentication process will match whatever the bad actor inputted for authentication purposes. 

Authentication factors are also only as strong as a person, user, or business makes them. Traditional forms of authentication factors involve a password, or a KBA, such as a secret question. If the password is weak or the KBA is easy to guess, cybercriminals can hack into these systems, apps, or services by providing the same authentication factor. 

The stronger the authentication factor, the more secure and protected a user’s identity and rights and privileges are. It’s ideal to use more th