As another year draws to a close, it’s time to start thinking about what trends and challenges may face us in 2024. Next year promises to be a pivotal moment in the evolution of identity management and the integration of artificial intelligence (AI). As we grapple with the challenges posed by sophisticated phishing attacks, deepfakes, and the ever-expanding influence of AI, the need for innovative solutions has never been more critical. This blog post explores the emerging trends that will shape the identity landscape, from identity inclusion and access movements to the intersection of AI and security.
Inclusion and Access: Bridging the Digital Divide
The fusion of our physical and digital lives requires a fundamental shift in how we approach identity. As we move toward a future where digital identity underpins social and economic mobility, the importance of inclusivity cannot be overstated. In 2024, there will be a heightened focus on ensuring secure and convenient identity verification, both online and in-person.
Regulatory Surge in the Cyber Risk Landscape
With the Biden administration’s landmark Executive Order setting new standards for AI safety and security, 2024 is poised to see a regulatory surge. Chief information security officers (CISOs) will need to prepare for continued AI regulation, new post-quantum guidance, and anticipated legislation around Know Your Customer (KYC) guidelines. As guidance from governments increases, businesses must adapt their cybersecurity strategies to navigate a patchwork of regulations and ensure the security of customer data.
AI-Powered Phishing and the Banking Dilemma
The age-old threat of phishing takes on a new dimension in 2024 as AI-enabled phishing becomes more sophisticated and widespread. The financial industry faces a dual challenge with AI. While AI presents opportunities to enhance customer experience and reduce costs, it also intensifies the arms race with hackers. The scalability and effectiveness of AI-driven attacks means that financial institutions must continuously innovate their security and risk management strategies to ensure continued security to their most important assets: PII data and monetary instruments.
Post-Quantum Cryptography: A Looming Challenge
While post-quantum cryptography may not be a top priority for many CISOs today, its existential threat cannot be ignored. In 2024, businesses, especially in the banking sector, must upgrade their cryptography to post-quantum standards. The long data retention mandates in banking make it imperative to prepare for “Harvest Now, Decrypt Later” quantum attacks (in which encrypted data that is stolen now could then be accessed once a suitably powerful quantum computer is available), even if quantum computers are not yet a reality. Failure to do so could have repercussions for decades to come.
Open Banking and the Cybersecurity Wild West
Open banking regulation is set to accelerate in the U.S., posing challenges and opportunities for financial institutions. While consumers seek convenience, banks must navigate the potential threat to direct customer relationships. The cybersecurity landscape will undergo growing pains as open APIs introduce new access points and players. Collaboration with regulators and fintechs, combined with advancements in identity verification, is crucial to ensuring the privacy and transparency of financial ecosystems.
Simplifying Tech Complexity for Enhanced Security
Banks face a growing challenge in managing the complexity of their tech stacks, particularly in the realm of identity verification. Fragmentation increases the risk of attacks, making it essential for institutions to consolidate vendors and streamline their ecosystems. Vendor consolidation not only adds an extra layer of protection against bad actors but also facilitates a more seamless experience for consumers.
Biometrics: Striking the Balance Between Security and Convenience
Advancements in biometrics offer a transformative solution to balancing security and convenience in the digital realm. Banks will increasingly use biometric technology, smartphones, and document recognition to enhance security measures. By adopting innovative solutions, institutions can create a system that deters fraud without frustrating users, providing a secure and user-friendly experience.
As we embark on the journey through 2024, the intersection of identity, AI, and cybersecurity will define the technological landscape. From changes in how we view identity to the regulatory surge in AI and the ongoing challenges of phishing and post-quantum cryptography, businesses and individuals alike must stay vigilant and adapt to these transformative trends. It’s a year of innovation, adaptation, and collaboration as we navigate the complexities of the digital age.