The Business Benefits and Importance of Identity Security

Whether you’re onboarding a new customer, enabling remote access for employees, or securing high-value transactions, knowing who’s on the other end is critical. That’s where identity security comes in — not just as a safeguard, but as a strategic advantage.

What does identity security really mean? Why does it matter? And how can it help your organization reduce fraud, streamline compliance, and deliver better customer experiences?

Identity security is the discipline of verifying and managing digital identities across people, devices, and systems to prevent unauthorized access, account takeover (ATO), and fraud. It goes beyond traditional identity and access management (IAM) by integrating proactive detection, contextual risk signals, and real-time authentication strategies.

The National Institute of Standards and Technology defines digital identity as the unique representation of a person or entity engaged in an online transaction. It includes all relevant attributes and identifiers. For example, when a customer opens a new bank account online, their digital identity may include a scanned ID document, a selfie matched through facial biometrics, and metadata like IP address or device type — all used to verify they are who they claim to be.

So, in simple terms, identity security is about ensuring every digital interaction — whether it's a login, transaction, or account creation — is tied to a verified, legitimate identity. It enables organizations to distinguish real users from fraudsters in real time, reducing risk while maintaining seamless access for authorized individuals.

Why Is Identity Security Important?

Without identity-centric security, organizations put themselves at risk in an increasingly sophisticated threat landscape. Attackers have refocused their efforts on identity-based tactics, targeting digital identities to exploit their access to sensitive information.

Worse yet, their techniques are advancing rapidly. Here are some of today’s most complex identity threats:

• Synthetic Identities: Bad actors create entirely new identities by combining real and fake personal information — for example, using a stolen Social Security number (SSN) with a fictitious name and birthdate. These identities are difficult to detect because they don’t belong to any one real person. The Deloitte Center for Financial Services estimated that, in the U.S. alone, synthetic identity fraud will generate at least $23 billion in losses by 2030.
• Deepfakes: Attackers use artificial intelligence (AI) to manipulate audio, video, or images to impersonate real individuals. In the context of identity fraud, deepfakes may spoof biometric authentication or trick facial recognition systems during remote onboarding. According to Entrust’s 2025 Identity Fraud Report, there is one deepfake attempt every five minutes, as of 2024.
• Digital Document Forgeries: Instead of creating fake IDs from scratch, fraudsters use AI tools to manipulate real documents, altering names, photos, or expiration dates with remarkable realism. This type of forgery is both scalable and difficult to detect without advanced document verification. In 2024, digital forgeries increased by 244% – surpassing physical counterfeits for the first time – according to the Identity Fraud Report.
• Injection Attacks: Rather than tampering with identity data itself, fraudsters use injection techniques to feed fake inputs, such as pre-recorded videos or synthetic biometric data, directly into verification systems. This bypasses normal live capture processes and is a common entryway for deepfakes.

While the stakes are high, identity security isn’t just about keeping bad actors out — it’s also about creating a better experience for the people you want to let in.

Today’s customers expect fast, frictionless access to services. Whether opening a new account, signing in across devices, or completing a high-value transaction, they want the process to feel seamless, secure, and personalized. Long wait times, repeated verifications, or clunky login methods create friction and frustration.

Identity security helps eliminate those pain points. By enabling features like passwordless login, biometric authentication, and intelligent risk-based access, organizations can streamline user journeys while maintaining high levels of trust. The result? Stronger security and better customer satisfaction, without compromising on either.

There isn’t such a thing as a singular identity security solution. Rather, a truly robust identity infrastructure is made up of many interconnected layers. Some of the most important components include:

• Identity Verification (IDV): Confirms that a person is who they claim to be using document verification, biometric matching, and data validation. Identity verification is especially critical during onboarding, where verifying a legitimate user lays the foundation for all downstream trust.
• Identity and Access Management: Manages user roles and permissions to ensure only the right individuals access the right resources. IAM systems define who has access to what, under what circumstances, and serve as a centralized way to enforce secure access policies across an organization.
• Multi-Factor Authentication (MFA): Requires users to present two or more verification factors, increasing resistance to phishing and credential theft. A common example combines a password with a one-time code sent via text, an authentication app, or a biometric scan, ensuring that stolen credentials alone aren’t enough to gain access.
• Risk-Based Authentication (RBA): Adjusts authentication requirements dynamically based on contextual signals like location, device, and behavior. For example, if a user logs in from an unfamiliar country or an unrecognized device, RBA may trigger additional verification steps.
• Passwordless Authentication: Uses biometrics, push notifications, or cryptographic keys instead of traditional passwords to reduce friction and identity risk. This not only improves user experience by eliminating password fatigue but also removes one of the most exploited attack vectors.
• AI-Driven Biometric Authentication: Uses facial, voice, or fingerprint recognition — often powered by machine learning — to accurately authenticate users. These systems incorporate liveness detection to confirm that the biometric data is being presented by a real, live person rather than a photo, mask, or deepfake. This makes them far more resilient to spoofing attempts and ideal for secure remote interactions.
• Digital Identity Orchestration: Coordinates all verification and authentication steps across platforms, automating decisions based on pre-set policies. This allows organizations to tailor user journeys based on risk profiles, balancing security and convenience at scale.
• Fraud Detection Signals: Monitors behavior and device reputation in real time to flag anomalies and stop suspicious access attempts. These signals can include unusual typing speed, geolocation mismatches, or known fraud patterns, and are essential for detecting sophisticated attacks in progress.
• Digital Signing: Applies cryptographic signatures to documents and transactions to verify identity, ensure data integrity, and enable non-repudiation — critical for compliance and trust in digital workflows. It ensures that what was signed can’t be tampered with or denied later, meeting the standards of regulations like eIDAS.

Additionally, two emerging areas of identity security include:

• Identity Threat Detection and Response (ITDR): Detects identity-based threats like ATOs and enables rapid mitigation. ITDR tools monitor identity systems for suspicious behavior — such as unusual login patterns, privilege escalation attempts, or anomalies in access requests — and trigger automated responses to contain threats before damage occurs.
• Identity Security Posture Management (ISPM): Provides continuous visibility and auditing of identity configurations, controls, and exposures across the enterprise. ISPM solutions help organizations identify misconfigurations, excessive privileges, or inactive accounts that attackers could exploit.

In combination, these pieces establish a firm identity infrastructure that organizations can use to safeguard people, devices, and data from identity threats of all shapes and sizes.

Implementing a secure identity fabric can yield tangible business advantages, including:

Reduced Account Takeover Fraud and Impersonation Attacks

ATO fraud is on the rise. The good news? Technologies like IDV, risk-based adaptive authentication, and real-time fraud detection can help organizations stop attackers before they gain a foothold. These layers make it significantly harder for deepfakes, spoofed credentials, or injected data streams to bypass onboarding secure access controls.

Plus, this has a monetary benefit. In the U.S. alone, ATO fraud costs over $13 billion annually. Reducing even a fraction of that risk translates to major cost savings and stronger operational resilience.

Lower Customer Acquisition and Onboarding Costs

Manual identity checks are slow, error-prone, and expensive. Modern identity security measures streamline onboarding by automating document and biometric verification, helping businesses cut review times, reduce abandonment rates, and improve conversion.

Take TBI Bank, for instance. Implementing Entrust’s IDV solutions helped TBI improve onboarding efficiency, accelerating registration by 80%. As a result, it also lowered the cost to acquire and verify customers by 66%.

Enhanced User Experience and Trust

Customers demand fast, smooth, and secure access to digital experiences. The only problem? Sometimes, security and customer experience are at odds. Fortunately, modern identity tools like passwordless or adaptive authentication deliver the best of both worlds.

This is especially true for biometric authentication. A survey from the Entrust Cybersecurity Institute found that consumers see biometrics as much more convenient and secure than traditional passwords. In fact, 53% of consumers believe fingerprint scans are the most secure authentication method, followed by facial recognition (47%).

Simpler Regulatory Compliance

Know your customer (KYC) and anti-money laundering (AML) mandates put pressure on organizations to optimize identity verification. Meanwhile, laws like the General Data Protection Regulation or eIDAS 2.0 hold them to a higher standard of data security.

Identity security helps meet these demands by embedding robust verification, authentication, and auditability into every interaction. Solutions like AI-powered IDV, liveness detection, and digital signing create a defensible chain of trust — enabling compliance with global frameworks while reducing manual overhead.

Zero Trust Security

Identity security is a cornerstone of Zero Trust architecture. By continuously confirming users based on contextual risk — not just credentials — it aligns with the principle of "never trust, always verify." Adaptive authentication, least-privilege access, and ongoing monitoring all work together to prevent lateral movement and limit the blast radius of any breach.

Strong Workforce and Consumer Identity Management

Whether managing remote employees or serving global customers, centralized identity controls make it easier to enforce policies, detect anomalies, and maintain visibility across environments. With role-based access, dynamic risk scoring, and cross-platform orchestration, identity security ensures that both internal and external users have the right access — and only the right access — at the right time.

A secure identity infrastructure isn’t just built on the right technologies — it also requires the right strategies. These best practices help organizations strengthen protection across the identity lifecycle, from onboarding to daily access and beyond:

1. Combine Biometric, Document, and Data Verification

   Layer multiple verification methods to ensure identities are genuine. Biometric matching, document validation, and data source checks (like proof of address or watchlist screening) collectively reduce the risk of fraud.

    

2. Use Certificate-Based Authentication for Users and Devices

   Digital certificates provide strong, phishing-resistant identity assurance for both people and machines. They also support encrypted communications and device trust — critical for remote environments.

    

3. Rotate Cryptographic Keys and Automate Lifecycle Management

   Outdated or unmanaged keys are a common compliance and security gap. Automating certificate and key rotation ensures cryptographic hygiene and helps prevent service outages or security lapses. With Entrust’s Certificate Hub, you can manage everything from one intuitive portal.

    

4. Use Adaptive Risk Signals to Adjust Authentication Methods

   Implement dynamic authentication policies that respond to risk context — for example, requiring stronger authentication for logins from new devices or unexpected geographies. This keeps access both secure and user-friendly.

    

5. Centralize Identity Management in a Unified Platform

   A fragmented identity stack increases risk and complexity. Unifying identity verification, authentication, and policy enforcement streamlines operations and improves visibility.

   Entrust’s Identity Security portfolio provides integrated capabilities to manage both workforce and customer identities from a single solution. With our Cryptographic Security Platform, you can leverage public key infrastructure, key management, and hardware security module capabilities in one cohesive system.

    

6. Simplify Orchestration With a No-Code Workflow Builder

   Your fraud and security team should be empowered to design and adapt verification flows quickly — without relying on developers. Tools like Workflow Studio allow for rapid orchestration based on changing risk, market, or regulatory needs. With this identity security solution, you can build the ideal journey for your customers, automate decisions, and maximize conversions with no coding required.

    

7. Train Staff on Identity Hygiene

   Technology alone isn’t enough. Ensure internal teams understand best practices for account access, password policies (where applicable), and identity verification processes. A well-informed workforce is a critical line of defense against social engineering and insider threats.

Identity security is no longer a back-office function, but a business-critical capability that underpins trust, compliance, and customer experience. Entrust offers the tools and expertise to help you secure every identity across your digital ecosystem.

Explore our portfolio of Identity Security solutions to learn how you can protect what matters most — from day one, to day two, and beyond.