According to a 2017 Identity Fraud Study by Javelin Strategy and Research, about $700 million was lost to criminals in the United States alone, through identity theft in 2016. Additionally, the identities of about 2.5 million diseased Americans were stolen by fraudsters, who in turn used those details to fraudulently secure loans, open credit card accounts, and carry out other nefarious acts.
In terms of the cryptosphere, global regulators have made it mandatory for all crypto-linked businesses and exchanges to conduct extensive know-your-customer (KYC) checks on users in a bid to crush illicit activities of fraudsters in the space. Now, Civic, a blockchain startup, is primed to put a permanent fix to all loopholes in the identity verification world, with the power of distributed ledger technology. Civic calls its decentralized identity ecosystem aimed at tackling KYC challenges: Identity.com.
The Identity.com ecosystem is powered by Civic tokens (CVC). CVC facilitates all transactions between individuals, companies, and other entities on the platform. The Civic team continues forward in their mission to build a blockchain-powered one-stop shop for all things identity verification and management.
Fujitsu Real-Time Identity Verification
Per sources close to the matter, Fujitsu Laboratories Ltd. has announced the launch of its digital identity exchange solution that uses DLT to prove reputation and validate a user’s identity in a fail-proof way.
The firm claims the new solution enables individuals and businesses alike, especially those involved in online transactions, to quickly verify the identity of other parties.
“The new digital identity exchange technology promises a future where entities can enjoy online services more safely, offering user-friendly features including graphics to enable users to visualize the relationships between users,” declared Fujitsu.
The company says the solution also comes with a unique “trust score” that allows a user to determine the trustworthiness of the other party before a transaction is initiated.
The technology was developed based on Decentralized Identification (DID), and analyzes the risk of falsification and ensures the validity of data for all parties involved in a transaction.
According to the Fujitsu team, the solution carries out a mutual evaluation of each user on the platform whenever a transaction takes place. It also simultaneously infers the relationships between each entity based on previous transaction data.
Evaluations such as reputation and user ratings are recorded as a series of transaction data on the distributed ledger, thereby significantly improving the reliability of insights into the trustworthiness of each user.
The system converts the transaction data into a graph structure, and a trustworthiness score is assigned to each user based on the number of trusted users that evaluate them highly.
Fujitsu says this method make it almost impossible for bad actors to cooperate with a third party to falsify their evaluation.
“If a user cooperated with another entity to improperly raise their evaluation, the graph-structured relationships will reveal information like the weakness of their relationships with other users, enabling the system to easily identify misrepresentations,” the team said.
The company claims the new solution allows users’ identities to be verified without forcing them to submit all of their details.
If all goes as planned, Fujitsu will integrate the solution into its proprietary Intelligent Data Service Virtuora DX Data Distribution and Utilization Service.