3 Geographically-Diverse Regulations in the Global Identity Verification Market Identity verification is essential for businesses to protect their consumer's personal information from data breaches and fraud. Equally important is complying with identity verification regulations. This will help prevent account takeover, identity theft, and other forms of fraud. For instance, as per the latest Federal Trade Commission (FTC) data, consumers reported a loss of nearly $8.8 billion in fraud in 2022, up by 30% over 2021. Imposter scams rendered the second-highest reported loss, incurring losses of around $2.6 billion. According to Inkwood Research, the global identity verification market is expected to register a CAGR of 15.57% during 2023-2032 and garner $37772.09 million in revenue by 2032. Further, compliance with identity verification regulations will aid businesses in implementing effective identity verification processes. In addition, it will enable businesses to establish trust with consumers by showcasing their gravity and priority toward serious data protection. At the same time, failing to comply with regulations can result in reputational damage, legal action, and fines. This blog examines 3 geographically-diverse identity verification regulations for different industry verticals.
1. Electronic Identification, Authentication and Trust Services (eIDAS) The eIDAS regulation helps public authorities, citizens, and businesses to carry out seamless & secure electronic interactions. It facilitates a European internal market for trust services to ensure their working and the same legal status across borders as their conventional paper-based equivalent. Also, the regulation makes sure that businesses and people use their own national electronic identification schemes (eIDs) to access online public services in other EU nations. Further, eIDAS offers benefits for European government services, businesses, and citizens. For instance, for financial services businesses, it facilitates:
Improved document tracking Minimal time for document exchange Decreased costs through streamlined processes Compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations
2. California Consumer Privacy Act (CCPA) The California Consumer Privacy Act of 2018 (CCPA) offers consumers more control over the personal information businesses collect. This act secures new privacy rights for California consumers. These include:
Right to non-discrimination for exerting their CCPA rights Right to delete personal information Right to know about how personal information is used and shared Right to opt out of sharing their personal information