ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Digital Nomad Trend Linked to Identity Fraud; Insurance Industry Most Affected

The surge in the global digital nomad movement is causing a spike in identity fraud.
PUBLISHED JAN 18, 2024
Cover Image Source: A staff member stands in a projection of live data feeds | Getty Images | Photo by Peter Macdiarmid
Cover Image Source: A staff member stands in a projection of live data feeds | Getty Images | Photo by Peter Macdiarmid

A recent survey reveals that since the summer of 2021, there has been a 21% average global increase in the verification of foreign documents, with the U.S. and UAE experiencing a notable 25% rise. The insurance sector is particularly impacted, dealing with a 27% increase in foreign ID verifications, closely followed by the financial and banking industries at 25%. This surge in foreign clients is primarily attributed to the expanding digital nomad movement (where employees embrace remote work from any corner of the world or while traveling), per AFP.

Close-up of code on a computer screen for the Apache Struts framework | Getty Images | Photo by Smith Collection
Close-up of code on a computer screen for the Apache Struts framework | Getty Images | Photo by Smith Collection

The complexity of verifying a diverse range of foreign IDs has led to increased identity fraud risks. According to the survey by Regula, 40% of business decision-makers cite fraud as a major challenge in verifying digital nomad identities. This concern is even more pronounced in the UAE and Mexico, where 51% and 49% of decision-makers, respectively, feel vulnerable to fraud. Alarmingly, 80% of survey participants directly link the digital nomad trend to a spike in document forgery, with the insurance industry witnessing a 22% growth in document fraud, and the financial sector nearly 19%.

The top ten scams frauding people all over the globe|Pexels|Photo by Nataliya Vaitkevich
A diverse range of foreign IDs has led to increased identity fraud risks (representational image) | Pexels |Photo by Nataliya Vaitkevich

To counter these challenges, 57% of organizations are now implementing biometric authentication to enhance the security of digital onboarding processes. In response to document forgery, 53% of businesses prefer verifying only electronic documents, which are significantly more secure due to embedded RFID chips. This shift is more pronounced in the financial and insurance sectors, with 61% of decision-makers opting for e-doc verification.

While electronic documents offer enhanced security, organizations still face threats like data manipulation or interception during verification. Hence, a "zero-trust-to-mobile" approach and sophisticated NFC verification technology are essential to authenticate both the chip and its data. Regula’s Document Reader SDK is an example of a technology offering server-side verification to ensure chip authenticity and data integrity.

Henry Patishman, Executive Vice President at Regula, emphasizes the need for businesses to adopt new technologies for reliable verification, especially in remote processes. He notes that the overall digitalization and mass movement of people is creating new challenges for businesses, necessitating the adaptation of identity verification processes to evolving scenarios and requirements. As a response, leading vendors like Regula are introducing innovative solutions across various industries.

MORE ON MARKET REALIST
Despite having just 25% ownership of her company, Meagan Bowman managed to bag a $400,000 deal.
19 hours ago
In the end, Harrison felt like he hit the jackpot as he knew every collector would be after the item.
20 hours ago
Former players and audience members shared how the show deals with controversial statements.
1 day ago
Fans were divided on whether Adam Wredberg's Bonus Round puzzle was solvable or not.
1 day ago
The lucky win delighted the fans as the contestant, Sunita Baru took home more than $50,000.
2 days ago
Chris and Jeanie Rodgers didn't just beat up the zombie on the show, but also had him present their product to the judges.
2 days ago
Fans on Reddit complained complained that some games are either overly difficult by design or favor only physically fit contestants.
2 days ago
Contestant Joey Sweet took the loss in stride, but the show's viewers weren't happy with the puzzle selection.
3 days ago
A lot of things on set were put to the test during the "Is it real or is it cake?" challenge, including the host.
3 days ago
Fans were left disappointed after the contestant, Alicia Slagle, failed to guess an easy phrase in the finale.
3 days ago
Jackie Fakhoury was also joined by her husband and son in celebration on stage.
4 days ago
The guest had no idea that her $30 ring was studded with diamonds and made of platinum.
4 days ago
In a rare event, Harrison didn't haggle the seller as he knew he had to make a deal for he coin.
4 days ago
The Bobek family, who came dressed in Polish Highlander attire, had the host grooving to their tunes.
5 days ago
Contestant Marie-Eve Augier’s smart letter choices turned the puzzle into an easy solve.
5 days ago
The Sharks felt that the founder of Besomebody didn't have the "capacity to listen."
6 days ago
Jennings shared how Trebek showed great resillience and showmanship during his last days on the show.
6 days ago
The contestant, Staci Urban put up a great show to win over $60,000 in one night.
6 days ago
The TikToker warned fellow shoppers about the risks of infection from the salmon.
7 days ago