COMMENTARY: Identity fraud experts have sounded the alarm on the need for accurate and secure digital identity verification for years. From massive data attacks to emerging technologies accelerating fraud, this past year proved that our systems are vulnerable, the status quo is unsustainable, and the government must take action.
Will U.S. digital identity finally get the attention it deserves in 2025? A combination of technological advancements, growing nation-state threats, and a new administration focused on efficiency are important elements for driving change.
[SC Media Perspectives columns are written by a trusted community of SC Media cybersecurity subject matter experts. Read more Perspectives here.]
With the increasing cost and impact of fraud, we must act now or risk falling victim to increasingly sophisticated threats. Here are five trends that will define the digital identity landscape in 2025:
- Fraud executed by nation-state actors will flood government, eroding trust: Nation-state actors have continued to orchestrate fraud at massive scale. In 2025, these attacks will ramp-up as technology advances and geopolitical tensions rise. The increase in state-sponsored fraud will push legacy digital identity verification tools to keep pace. Nation-state fraud will permeate not just the public sector and financial services, but across industries that Americans interact with daily. Expect to see serious attacks attempted on critical infrastructure, such as power plants, communication networks, public health organizations, and emergency services systems. As these attacks increase in sophistication and speed, they will erode trust in government if left unaddressed. Government leaders must take a page out of the cybersecurity playbook by adopting the most advanced products to protect their customers and constituents.
- Every level of government will focus on fraud prevention: The incoming administration’s focus on efficiency and cost reduction will open the door for stronger digital identity verification. The U.S. Government Accountability Office estimated that fraud costs the U.S. over $500 billion annually, and the House Select Subcommittee on the Coronavirus Pandemic released a report finding that states lost more than $191 billion in unemployment fraud because of a lack of robust identity verification tools. These estimates only scratch the surface as they fail to account for inadequacies in processes and technologies that have long created the perfect conditions for identity-related fraud across government. If government agencies are serious about saving money and improving efficiency, they will start by prioritizing accurate and secure digital identity verification.
- Silos in government will persist: We’ve all heard talk about increased collaboration and data-sharing to fight fraud. Yet, many government agencies still operate in silos when it comes to digital identity and fraud prevention. The challenges of integration, differing priorities, and privacy concerns keep the government from adopting a fully-unified approach. This fragmentation hinders progress, making it harder to address identity fraud in a coordinated and comprehensive manner. The critical question will be whether a large-scale event—such as a major identity fraud attack launched by a country like China—forces government to reconsider its approach and embrace collaboration. While I hope I’m wrong, the tendency to operate in silos won’t change unless there’s a galvanizing event that shifts the discourse to prioritize fraud prevention.
- Absent federal action, states will shape AI, privacy, and digital identity policy: The federal government will continue to drag its feet on national frameworks for AI, privacy, and digital identity, so states will continue to lead, creating a patchwork of regulations. This will result in a compliance nightmare for businesses operating across state lines and could delay significant improvements to the security and trustworthiness of digital identity systems. The lack of a coherent federal framework will hinder progress and cause issues for citizens seeking to engage in online services.
- Recognition of the true costs of identity fraud: In 2025, the true cost of failing to prioritize digital identity verification will become clear. Today, the financial services sector stands at the forefront of tackling fraud, but in the coming years, organizations across various sectors such as healthcare and utilities will realize that fraud prevention isn’t just a financial issue. The cost of fraud extends far beyond direct monetary losses to include reputational damage, loss of consumer trust, and legal liabilities. In government, the stakes are particularly high as people increasingly access services online – from renewing passports to applying for small business loans to receiving food assistance.
I expect 2025 to emerge as a defining year that spotlights the critical need for robust digital identity verification. Policymakers, agency leaders, and others in positions to create change must take steps to prioritize digital identity before it's too late.
Jordan Burris, vice president and general manager of public sector, Socure
SC Media Perspectives columns are written by a trusted community of SC Media cybersecurity subject matter experts. Each contribution has a goal of bringing a unique voice to important cybersecurity topics. Content strives to be of the highest quality, objective and non-commercial.
