3 Geographically-Diverse Regulations in the Global Identity Verification Market

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3 Geographically-Diverse Regulations in the
Global Identity Verification Market Identity
verification is essential for businesses
to protect their consumers 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
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• 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

• Moroever, the CCPA was amended in November 2020
  and added additional privacy protections
  effective from January 1st, 2023.
• The new rights include
• Right to limit the disclosure and use of
  sensitive personal information
• Right to correct the imprecise personal informatio
  n provided
• The CCPA applies to several businesses, including
  data brokers. Also, the businesses subject to
  the CCPA have many obligations, like giving
  notices to consumers explaining their
  privacy practices and responding to consumer
  requests about exercising the aforementioned
  rights.
• 3. Personal Information Protection and Electronic
  Documents Act (PIPEDA)
• The Personal Information Protection and
  Electronic Documents Act (PIPEDA) applies to
  private-sector organizations across Canada that
  collect, disclose, or use personal information
  for commercial activities. A commercial
  activity, as per PIPEDA, is any regular
  course of conduct or any particular act, conduct,
  or transaction of a commercial nature. This
  includes the sale, lease, or barter of
  membership, donor, or other fundraising lists.
• In addition, businesses operating in Canada and
  handling personal information that crosses
  national or provincial borders for commercial
  activities are subject to PIPEDA, irrespective

of the territory or province of their base.
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Whereas federally-regulated organizations
conducting business in Canada are always subject
to PIPEDA. These organizations include

• telecommunications companies
• offshore drilling operations
• airports, airlines, and aircraft
• inter-provincial or international transportation
  companies
• banks and authorized foreign banks
• radio and television

broadcasters

• Moreover, the Personal Information Protection
  and Electronic Documents Act (PIPEDA)
  obligates that organizations obtain individuals
  consent while collecting, disclosing, or using
  their personal information. Also, personal
  information can only be used for the purpose it
  was collected. For other unintended purposes,
  organizations must obtain consent.
• But how does PIPEDA define personal information?
• PIPEDA describes personal information as any
  subjective or factual information, recorded or
  unrecorded, about an identifiable individual.
• This includes the following information
• Medical records, credit records, employee files,
  disputes between the merchant and the consumer,
  loan records, intentions
• Disciplinary actions, social status, evaluations,
  comments, opinions
• Blood type, ethnic origin, income, ID numbers, nam
  e, age
• The impartial independent investigations into
  the personal information handling practices of
  businesses subject to PIPEDA are undertaken by
  the Office of the Privacy Commissioner of Canada
  (OPC). It publishes a selection of case
  findings and summaries from its
  investigations to offer tangible examples of the
  application of PIPEDA to businesses daily
  management of personal information.
• Future of Identity Verification Market
  Regulations
• Evolving technology will accelerate the need for
  updated regulations to tackle new forms of
  identity theft and fraud. Accordingly, the
  future of identity verification regulations
  will be directed by an increased focus on data
  transparency, security, and privacy. This will
  further require companies to ensure
  compliance, reliability, and efficiency
  of their identity verification processes.
• Such obligations will require partnering with
  third-party providers and investments in new
  technologies. Overall, geographically-diverse
  regulations influence will be vigorous in
  directing the course of the global identity
  verification market growth.

FAQs
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• What are the key challenges businesses face
  regarding identity verification?
• A Businesses often encounter challenges like
  ensuring user convenience while maintaining
  security, staying compliant with evolving
  regulations (such as GDPR and KYC/AML),
  preventing identity theft, and adapting to new
  technologies that can undermine traditional
  verification methods.
• What should businesses consider when choosing an
  identity verification solution provider?
• A When selecting an identity verification
  solution provider, businesses should consider
  factors such as the provider's expertise in
  security and compliance, the range of
  verification methods offered, scalability to
  accommodate business growth, ease of
• integration with existing systems, and the
  flexibility to adapt to changing regulations and
  fraud trends.