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Digital
identity - a social and economic challenge !
Paris,
October 1st
2013 –
Today, digital identity exists for all, in all its forms and meets a variety of
needs. But insecurity on the Internet and the risk of identity theft are major
obstacles to the development and optimal use of digital identities. Yet, the
economic potential of the use of these identities is huge. According to a report
by the Boston Consulting Group, the value created through digital identities
could reach 1 trillion euros in Europe by 2020. The main challenge of the
economy of digital identity is the desire to provide individuals, businesses and
government organizations, secure and framed management of digital identity and
personal data. CARTES Secure Connexions Event, which will take place from 19 to
21 November 2013 in Paris, recently released the results of an IFOP study
dedicated to the protection of personal data and provides an inventory of
economic and security issues related to digital
identity.
Digital Identity at
stake
A digital identity is an
online or networked identity adopted or claimed in cyberspace by an individual,
an organization or an electronic device (Technopedia). This identity is
made up of characteristics or data attributes such as a username, a password,
the date of birth or the social security number. A digital identity is linked to
one or more digital identifiers, like an email address, URL or domain
name.
In terms of digital identity management,
key areas of concern are security and privacy. Because identity
loss and theft are rampant on the Web, digital identity authentication and
validation measures are critical to ensuring Web and network infrastructure
security in both the public and private sectors.
Two-thirds of digital identity’s total
value potential stands to be lost if stakeholders fail to establish a trusted
flow of personal data. Given proper privacy controls and sufficient benefits,
most consumers are open to sharing their personal data. To ensure that the flow
of personal information continues, organizations therefore need to make the
benefits clear to consumers. They also need to embrace responsibility,
transparency, and user control. Important privacy considerations relate to data
collection, data usage and storage, data minimization, anonymity, pseudonymity
(the use of a 'false name', a state of disguised
identity), and the extent to which individuals have control over how
their personal data is used.
A social and economic
challenge
Solid identity management and strong
credentialing practices are critical for governments, organizations and
enterprises that must verify the identities of a wide variety of
individuals—employees, business partners, emergency response officials and
citizens as a whole.
As a result governments around the world
are putting in place the legal framework to leverage strong identity credentials
for eGovernment, eHealth and eCommerce and the use of these credentials is
growing fast. Initiatives are taken all over the world to build digital identity
and trusted credentials frameworks in cyberspace. Among many others: in the US
the NSTIC (National Strategy for Trusted Identities in Cyberspace), a White
House initiative calling for the development of an ’Identity Ecosystem’; in
Europe surveys about electronic Identity and Authentication Systems by the ENISA
(European Network and Information Security Agency); in France Idenum, a company
supported by the government for the establishment of a common framework and universal digital identity
solutions…
Applications that
leverage digital identity and personal data boost economic efficiency, help
focus research and marketing efforts, and spur the creation of personalized
products and services that, in turn, spur revenues. For consumers, the benefits
are compelling too as products and services are better suited to their specific
needs and requirements. Digital identity is therefore relevant to the economy as
a whole. According to a recent BCG report, six major trends can be assessed in
digital identity applications: process automation, user enablement,
personalization, enhanced delivery, personal data-driven R&D, and secondary
monetization. These applications are relevant to any type of industry, even if
the public and health care sectors are expected to profit the most of it.
Huge business
opportunities
How to assess the value
of digital identity? It’s not that easy as it amounts to what value consumers
place on their personal information and how they make decisions about whether or
not to share it. The above-cited BCG report shows that the value created through
digital identity can be massive: €1 trillion in Europe by 2020, or roughly 8
percent of the combined GDP of the EU. This figure can obviously be challenged
but the possible uses of digital identity undoubtedly know almost no bounds. The
most emblematic are public services and health, mobile and financial services,
retail, e-commerce, Web communities…not to mention the digital format of
classical identity and travel documents such as passports, drivers’ licenses or
ID cards.
Faced with such
business opportunities, activities and companies providing digital
identity-related technologies and services are mushrooming everywhere in the
world, from trusted devices suppliers to third party service providers. With
regard to the technology which best matches digital identity requirements for
security and privacy, smart cards/smart tokens clearly stand as the most able to
protect and manage digital identity and personal data. Smart card technology is
globally recognized as the most appropriate technology for identity applications
which must meet certain critical security requirements, including:
authenticating the bearer of an identity credential when used in conjunction
with personal identification numbers (PINs) or biometric technologies;
protecting privacy; increasing the security of an identity credential;
implementing identity management controls.
Whatever the environment - a
stagnant or dynamic economy, digital identity is a growth driver and a provider
of tremendous business opportunities…if it is handled in a thoughtful and
balanced way. Security and privacy will increasingly become an area of
competitive differentiation as and when people show confidence in the way their
personal data is managed. The ultimate word therefore is trust, a word – and a
field of knowledge - that should pave the way to success for the smart security
industry…
Isabelle Alfano, Director of
the Cartes Secure Connexions Event 2013, will be happy to answer any questions.
Please do
not hesitate to contact us.
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