Even without cyber criminals, FS systems are vulnerable – to both inherent failure and more general weaknesses in the digital infrastructure we take for granted.
How will we develop approaches that integrate financial players, law enforcement and industry – and work across geographies – to handle cyber vulnerabilities? How else might we innovate to confront the challenge of cyber-crime? What are the threats you think will, be most significant by 2030?
KPMG asked Team ‘Dig-ID’ how they would resolve this.
Team Dig-ID have developed a platform that increases data security and unites financial services and educates the end consumer.
With UK Finance estimating that in 2017 £732m was lost in unauthorised fraudulent transactions (and £1,459m was prevented), Financial Services Organisations (FSOs) need to innovate faster than cyber criminals. Dig-ID is the frictionless solution to prevent identity theft, fraud, and financial and economic crime.
The GDPR has increased awareness of the importance of data control. Dig-ID takes this further by making that control quick, easy and accessible, whilst making sure that those lacking access to relevant technology don’t get left behind.
Dig-ID provides everyone with a unique ID and an account serving vulnerable people and accommodating those in society who don’t do digital banking.
The solution will require collaboration between FSOs and this will drive a sharp reduction in digital crime. FSOs will cut costs of crime by better managing KYC (Know Your Customer) before an account is opened and continuously monitoring for suspicious activity, moving the approach to fraud from reactive ‘detect and respond’ to a proactive ‘predict and prevent’.
Further, Dig-ID will bring the greatest benefits of banking to the most vulnerable in society. With Dig-ID, identity verification is pain-free and a home address is no-longer required. Bank accounts will be accessible to the homeless. For those who don’t have access to mobile technology, biometric scanners will be in place in banks and pop-up shops, to reach even the most remote areas.
Finally, Dig-ID acts as a single, frictionless source of identity verification, so the power of consent is, literally, at the user’s fingertips. State-given identities will be stored on the blockchain, while the financial intelligence and analytics data will be stored and processed on Microsoft Data Lake, and the biometric data used for authentication in a distinct database. Using blockchain for identities ensures their integrity and availability. The decoupling of systems mitigates the risk of data aggregation and identity theft, while ensuring scalability. All data will be quantum encrypted.
To address cyber security risks, the underlying architecture will consist of three distinct and independently managed systems, reducing the risk of data aggregation. Identity data will be stored on the blockchain; personal identifiers will be anonymised, while maintaining traceability, before they are fed onto the analysis platform.
The future phases of Dig-ID could include an expansion to Business to Business transactions, law enforcement, health records, social media, and government services (e.g. tax, passports, etc.). There is also scope to scale alongside developing technologies, including blockchain and quantum computing, and encryption.