Recent podcast episode explored the emerging threats facing government agencies and citizens in the realm of digital identity and how governments can better safeguard constituents
by Brian Chidester, Host of The Government Huddle Podcast
As digital services expand, ensuring that individuals are who they claim to be has become increasingly complex. Fraudsters are exploiting advanced technologies like AI to create sophisticated identity theft methods, such as deepfakes and synthetic identities, making traditional IDV systems vulnerable.
Additionally, governments must balance security with accessibility to ensure that services remain inclusive while preventing fraud. The need for robust, scalable, and user-friendly identity verification solutions is paramount to countering these evolving threats.
In the recent episode of The Government Huddle Podcast, host Brian Chidester was joined by James Lee, COO of the Identity Theft Resource Center, and George Freeman from LexisNexis Risk Solutions.
Together, they explored the emerging threats facing government agencies and citizens in the realm of digital identity. From AI's role in fraud to the challenges of ensuring equitable access, the conversation offered deep insights into how governments can better safeguard constituents while enhancing their operations.
Here are the top five things you need to know:
1. Data Breaches Fueling Identity Crimes and Cyberattacks
2023 witnessed a record-high number of data breaches, almost double the previous all-time high. According to James Lee, data breaches are now the fuel for nearly all identity crimes, as stolen credentials from these breaches are often used in major cyberattacks. These attacks aren't just isolated to government agencies—companies like Ticketmaster and Advanced Auto Parts have also been targets. The problem is further exacerbated by the sale of stolen credentials, not just on the dark web but even on public platforms like YouTube.
2. AI: Both a Threat and a Solution in Fraud Prevention
George Freeman highlighted how AI has become a significant tool for cybercriminals. Automation and machine learning are now used to mimic human behaviors, making it hard to differentiate between real users and bots. In response, Freeman emphasized the importance of "fighting AI with AI." Machine learning can help government agencies detect fraudulent activity in real-time by analyzing behavioral patterns and other digital cues, offering a way to stay ahead of AI-driven fraud attacks.
3. The Importance of Equitable Access in Digital Identity Systems
As governments ramp up their efforts to secure digital identity systems, they must ensure that they do not inadvertently exclude vulnerable communities. Lee pointed out that during the pandemic, many groups, particularly Black and Hispanic communities, experienced disproportionate levels of identity theft and fraud. This gap highlights the need for more inclusive identity verification methods, which account for underserved populations that may lack access to foundational identity documents or high-speed internet.
4. Biometrics and Behavioral Data Are Key to Future Security
Both Lee and Freeman stressed the growing role of biometrics—such as facial recognition, fingerprints, and behavioral biometrics—in securing digital identities. However, they noted that these technologies must be paired with risk-based assessments of the devices and behaviors associated with users. Government agencies are increasingly exploring how to use such data to ensure that they are accurately identifying individuals while minimizing friction for legitimate users.
5. The Death of Social Security Numbers in Identity Verification
Freeman called attention to the increasing obsolescence of Social Security numbers as a primary means of identity verification. Citing a major data breach that resulted in millions of dollars in unemployment benefits being stolen, Freeman argued that governments need to move away from relying solely on static personal identifiers. Instead, a combination of device-based assessments, biometrics, and AI-driven evaluations can offer more robust and future-proof identity verification methods.
Overall, this podcast episode underscored the urgent need for governments to rethink how they approach digital identity. Data breaches, AI-driven fraud, and the need for equitable access are all key challenges that must be addressed.
By engaging new emerging threats with innovations in biometrics and machine learning, and ensuring that security measures don't disproportionately impact vulnerable populations, government agencies can better protect both their operations and the citizens they serve.
What’s Next?
Identity fraud poses one of the most significant threats to government operations and the security of citizens. Public programs like unemployment benefits, healthcare, social services, and tax filings have become prime targets for identity thieves. In the United States alone, government benefits fraud skyrocketed during the COVID-19 pandemic, with billions of dollars lost to fraudulent claims.
The consequences of such crimes extend far beyond monetary loss, affecting the ability of legitimate beneficiaries to access the services they need and undermining public trust in government systems.
LexisNexis Risk Solutions supports government agencies with identity verification through a range of advanced data analytics and technology-driven solutions. These offerings help agencies mitigate fraud, improve operational efficiency, and ensure that the right individuals gain access to services while minimizing identity-related risks.
To learn more about how LexisNexis Risk Solutions can help your agency visit https://risk.lexisnexis.com/government.
Brian Chidester is the Head of Industry Strategy at Adobe and the host of "The Government Huddle with Brian Chidester" podcast from GovExec. Mr. Chidester holds a B.S. in Communications Studies from Liberty University, is an Advisory Board Member for Digital Government Central, an advisor to the G20 Global Smart Cities Alliance at the World Economic Forum, and a member of the Forbes Technology Council.
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