With Payments Going Mobile, Identity and Access Management Market Will Reach $18.9 Billion

February 11, 2024 by

Image credit: Jumio

The identity management market is set to expand dramatically in the coming years.

According to MarketsandMarkets, the identity and access management market will reach $18.9 billion by 2019.

This rise is driven by the increasing focus on providing products and services on mobile devices and self-service through digitization. Identifying and securing consumers will be more important than ever, especially after record-breaking major data breaches, identity thefts, and fraud cases all occurring within the last year.

Instances of fraud are not only increasing, the cost per dollar hitting merchants is as well. Mobile-channels are especially costly for merchants, as they lose $3.34 dollars per dollar of fraud.

Fraudsters are also adopting more sophisticated strategies to use any bit of stolen information they can. Synthetic fraud, or fraud that occurs from forged identities, now accounts for nearly 85 percent of ID thefts in the United States, says the Federal Trade Commission. Criminals can take leaked credit card numbers, addresses, and contact information, and rework these details into making a new identity.

According to Jumio’s Chief Marketing and Strategy Officer, Marc Barach, it’s up to both consumers and businesses to be proactive in safeguarding transactions.

Jumio, an ID verification company for online and mobile payments, adds an additional layer of security by using government-issued IDs, such as driver licenses and passports, as credentials to greater verify customer authenticity.

Businesses should not look to secure mobile devices similar to PCs. Barach adds, “network security, the relative newness of the channel and its effect on consumer behavior, and the mobile form factor itself” all contribute to the necessity to specifically develop security solutions that benefit the mobile shopper.

Barach recommends that consumers shouldn’t reuse the same passwords and usernames since it leads to the compromise of multiple accounts. Social engineering, like phishing through suspicious emails, is also a major concern.

While consumers bear some responsibility for protecting themselves, the onus is now on businesses. “In reality, it takes a long time to change consumer behavior and that means that businesses need to overcompensate and go the extra mile to protect consumers,” Barach stated.

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