Summary:
Anywhere you are asked for a form of identification, such as the airport or the DMV, acceptable documents typically include a driver’s license, birth certificate, passport or Social Security card. But in an increasingly online world, digital identity credentials are becoming more common. In fact, 98% of security professionals have reported an increase in the number of identities they manage within the last year – meaning there are more digital identities than ever before.
It’s important to realize, though, that a digital identity is built from the same personally identifiable information (PII) as traditional credentials. Their exposure can harm your digital safety and security in the same way a lost wallet or passport can.
Ever been asked by a governmental or corporate entity to present an official form of identification? Historically, acceptable documents have usually included a driver’s license, birth certificate, passport or Social Security card.
Today, in our increasingly connected world, digital identity credentials have become more common. The growing number of digital identities puts additional security pressures on organizations, 73% of which reported effectively managing and securing digital identities among their top three priorities.
While digital identities are developed and used online, it’s important to realize they’re built from the same personally identifiable information (PII) as traditional credentials. As a result, their exposure can harm your digital safety and security the same way a lost wallet or passport can.
What is a Digital Identity?
A digital identity is an online profile generated by information gathered from your historical internet activity. This identity makes it possible for computer systems and databases to detect you on different networks or applications to personalize your online experiences. A digital identity often comprises various forms of PII, such as:
- Date of birth
- Usernames and passwords
- Purchase history and behavior
- Search or transaction history
- Social Security numbers
- Social media posts and activity
- Medical history
Together, these data points reveal patterns and create a body of information for a unique digital identifier, such as an email address or personal domain name. Using a digital identity, computers can mediate the relationship between your digital presence and the networks or databases you might be using. This digital PII is meant to verify it’s really you online.
Unfortunately, it’s possible for someone to compromise this information and use it in your place to take over an account or commit identity theft. These online authentication data points must be protected just as you would safeguard your physical PII documents.
Keep in mind that even with these types of controls in place, any mobile payment technology that collects all a user’s financial data in one place is likely too tempting for thieves to pass up.
How to Protect Your Data
According to The State of Identity Security for 2024, 84% of organizations reported being directly affected by an identity-related incident, many of which likely could have been prevented had proper online protections been in place.
“As long as we continue to depend on apps and online accounts, our digital identities will need protection,” says Margaret Poe, Head of Consumer Credit Education at TransUnion. “We use the internet to do online shopping, transfer money from the bank, go to school, work from home or go to a doctor’s appointment. It’s all from our phones and laptops, so this is a huge amount of data that must be defended.”
Poe noted there are a few steps that individuals can take to protect their digital identities:
1. Update your passwords
A quarter (25%) of consumers reuse the same password across multiple accounts, and more than a third (36%) incorporate personal details into their passwords. To reduce the risk of an account takeover or a credential stuffing attack, strengthen your logins. The traditional six- to eight-character password isn’t enough to block a hacker from accessing your information. Instead, upgrade to a secure passphrase. Secure passphrases are at least 14 characters long and include a mix of uppercase and lowercase letters, numbers and symbols.
2. Enable multi-factor authentication (MFA)
Utilizing MFA or two-factor authentication (2FA) adds an extra layer of security to online accounts. Both require at least one additional verification step beyond your password before granting access to your account (MFA can require two or more steps, while 2FA requires only two). Additional steps can include a one-time code sent to your phone, an email confirmation, or biometric checks like facial recognition or thumbprint scans. These help keep hackers who may have your username and password from accessing your account.
3. Use a VPN
Virtual private networks (VPNs) encrypt the data your device sends and receives, making it more difficult for bad actors who might be trying to intercept it. A mobile VPN, for example, provides more secure access to public Wi-Fi networks when using your smartphone or tablet. It can also continue protecting your device when bouncing between different network connections.
Of course, identity theft can happen even if you take precautions. If you suspect you’re a victim of identity theft, it’s important to act quickly and take necessary steps to get on the path to recovery.
Going Forward
As we continue to rely on technology, our digital identities will only become more prominent in our everyday lives. Soon, we may no longer need to physically carry our driver’s licenses and passports as we move about the world — instead using a digital ID.
Until then, both our physical and digital identity documents contain information that’s desirable to fraudsters, scammers and identity thieves. As more documents become digital, it’s vital to remember we all must take precautions to protect our valuable information.
