In the past decade, the broad digital transformation has made countless industries more attractive for cybercriminals. The reported incidents of data breaches and identity theft have constantly increased, resulting in massive financial losses and damage in investor and customer relationships. This is mainly attributed to the continuous use of traditional knowledge-based credentials like passwords.
The ever-evolving ways of fraudsters result in the need to adopt modern digital security measures to prevent bad actors from attacking their systems. Investing in identity proofing services has become a leading priority for numerous enterprises. Current innovations in identity verification solutions led to the development of biometric authentication, one of the cutting-edge identity validation solutions nowadays.
Because of its reliability, biometrics is considered an ideal knowledge-based authentication alternative in many institutions. Here, users who want to access an account must use their biological data to continue, which no one could easily exploit. Using this sophisticated technology is critical for complex business types as it significantly helps keep bad actors at bay. Among them is one of the emerging sectors worldwide, the sharing economy.
Share-based brands make it easier for consumers to make transactions for various goods and services. It works in a peer-to-peer (P2P) system where customers can engage with the sellers using a particular application or website on their devices. This is considered a fitting substitute for going outside to make purchases in physical stores, especially with the threat of the COVID-19 pandemic.
However, digital security measures employed by companies in the sharing economy are somewhat inconsistent and depend on various factors. No matter how little they might be, lapses in cybersecurity processes can pose a significant risk of compromising confidential data, which can lead to massive financial losses. In addition, it can also crumble the trust built with the customers, which is one of the essential ingredients in succeeding in the sharing economy sector.
To learn more about the sharing economy and the need for identity verification in the industry, check this infographic from authID.
