The Biggest Cybersecurity Trends To Look Out For in 2023 & Beyond

Rapid digital transformation driven by IoT, artificial intelligence comes with a heavy cost and has particularly fueled cyberattacks. The ongoing shift to online platforms has created massive opportunities for scammers to access your systems and commit cybercrimes.

The need for cybersecurity measures rang high in 2021 when the industry faced fires led by massive SolarWinds hack and vulnerabilities in Microsoft Exchange. These ever-growing attacks have led organizations to focus on cybersecurity trends and mitigate the risks effectively.

Let’s evaluate how worst the bugs are going to be in the upcoming years.

8 Cybersecurity Trends For 2022

To get ready for what’s ahead, consider these trends to build an idea about what to expect in 2022 in terms of cybersecurity.

  1. A rise in ransomware attacks
  2. Threat to supply chain attacks
  3. AI-powered cybersecurity controls
  4. Growth in IoT service market 
  5. Blockchain to turn as a common cybercrime vector
  6. Increasing mobile threats 
  7. Evolving role of company security leaders
  8. Threats to Educational Institutions

  1. A rise in Ransomware Attacks

According to reports, “The average amount of ransomware transactions per month in 2021 was $102.3 million.”

Ransomware attacks are on the steady rise and seem to be a major contributing force in the cybersecurity industry. The year 2021 saw the largest ransomware attacks of all time including the SolarWinds attack and the Colonial Pipeline attack that wreaked havoc across North America. The attacks are up by 148%, which can be attributed to remote working or rapid digitization promoted by the pandemic.

Ransomware attacks occur when scammers use malware to access and steal data from the victim’s system. It is malicious software that invades a computer, encrypts the file, limits access to the data, and puts them at risk to destroy them unless a ransom is paid.

Phishing attacks are the most common ways through which a ransom is deployed where employees of the company are asked to click a link or provide details. Once employees have clicked on this link, guess what? They’ve got tricked as the link will download the ransomware software.

Taking into consideration the alarming cases, companies must reevaluate their cybersecurity measures and establish firm policies.

  1. Threat to Supply Chain Attacks

The Covid-19 restrictions made companies face several supply chain bottlenecks. Supply chain attacks are not just limited to the IT industry; they affect the pharmaceutical sector, large retailers, the manufacturing industry, and more. Cybercriminals consistently seek blind spots or blockages to take advantage of. They often target vendors or organizations with lax security measures.

Ransomware attacks are of the top concern for those dealing in supply chain management as they have the ability to impact huge databases with a single breach.

“The number of supply-chain ransomware attacks isn’t likely to abate over the next 12 months either,” said Deepen Desai, CISO and vice president of security research and operations at Zscaler.

To prevent such attacks, companies should look toward more secure tools such as email security, Microsoft’s OS, and cloud computing software. This will reduce the threat to spear-phishing attacks and eventually mitigate the risks of cyberattacks.

  1. AI-powered Cybersecurity Controls

AI and machine learning have become vital tech tools in information security. They are essential to curb severe attacks as they can analyze and identify malicious events or threats in real-time. They can detect suspicious behavior in the transactions, determine malware exploiting the database and prevent systems from vulnerabilities.

Amid rising cyberattacks, AI tech tools prove to be a productive investment for companies as they can automate malware detection and respond to hacks more efficiently than traditional security approaches.

  1. Growth in IoT Service Market 

The market for connected devices or the internet of things (IoT) is consistently growing and is expected to reach 18 billion in 2022. Wide acceptance and usage of IoT devices create numerous entry points, allowing cybercriminals to access digital systems easily. Hackers can get access to computers/phones through connected appliances such as fridges. Fraudsters with nefarious intentions reach these systems and steal the valuable data stored there.

Prior to getting IoT fixed to your places, you should perform a careful audit, determine the potential threat posed by these devices.

  1. Blockchain to Turn as a Common Cybercrime Vector

Cryptocurrency theft increased 516% from 2020 to $3.2 billion worth of cryptocurrency.

Digital currencies have always been a threat having less barriers to entry. Cryptocurrencies are considered as the widely adapted investment means, implying there will be numerous investors who might not know how to deal on the platform. Such investors can easily become a victim of identity theft or data breaches. Fraudsters can steal tokens or coins by accessing through fake identities or stolen private keys.

To navigate the threats of crypto-related frauds, companies can reach identity verification services and

  1. Increasing Mobile Threats 

Mobile phones have become a key part of every task performed, whether it be for company purposes or unofficial tasks. People are increasingly using smartphones for banking, shopping, entertainment subscriptions, communication, ticket booking, and more. This makes them an easy target for fraudsters to commit cybercrimes.

Cybercriminals are using mobile devices to steal credentials and gain access to business networks and company databases. This is done through phishing attacks by asking employees to open the message or download the malicious mobile application.

Companies should aim at integrating ID verification solutions to their systems and performing multi-level authentication to build stringent systems that won’t get affected by cyber attacks.

  1. Evolving role of company security leaders

Cybersecurity is a concern for businesses, irrespective of their niche. According to a report, 57 percent of companies ranked cybersecurity as a higher risk than economic uncertainty and brand reputation.

This evidence that the need for chief security leaders has become more crucial than ever. With the companies transitioning to digital platforms, the role of security leaders has evolved. The influx of increased cyberattacks raises the demand for security training. In addition, to implement security measures at the workplace, they also need to manage a remote workforce.

To experience a cutoff, resources such as employee devices and accounts must be secured well. Security officers should maintain a balance between the company’s security measures and its strategies/policies. They can organize training programs and perform knowledge-sharing with the team.

  1. Threats to Educational Institutions

The pandemic has urged almost every sector to shift to digital means. With the rise in e-learning and remote work, schools, universities, and research centers make for major targets for cybercriminals. Any loophole in the system will give them a chance to steal student data. Scammers can also access essential user databases by logging in through fake IDs or stolen passwords. They target organizations with phishing attacks and manipulate teaches to give personal information and tax details.

This calls for higher educational institutions to tighten their security for safeguarding data of students, and faculty. To mitigate the risks of data breaches, learning institutions can integrate leading identity verification solutions. This helps to verify that the user logging in matches the company database.

Online Identity Verification: Meaning, Benefits & Use Cases

If you’re musing on the role of online identity verification amidst the tech-driven era, let’s dive deep into this.

Opening an account or getting services by visiting brick and mortar locations have almost lost their role and so do the traditional identity verification solutions. The customer verification market is witnessing a paradigm shift from manually performed identity verification to online identity verification.

Companies are harnessing the power of technological advancements, resulting in a substantial rise in digital transaction volume and value. Customers are reaping the benefits of easy accessibility, convenience, and quick results.

But what about cybersecurity?

Businesses are undeniably utilizing the potential of digital transformation, however, it comes with a severe cost. Increasing digital payments have witnessed a steep rise in data breaches, identity theft, fraud, and money laundering.

This is where identity verification solutions come into view.

Defining What Exactly Online identity verification Is

Digital identity verification refers to the process of verifying a person’s identity and ensuring they’re who they say they are. While opening a bank account or applying for a loan, customer verification plays a vital role in risk management and fraud prevention.

Online ID verification helps companies in combating fraud and minimizing risk. With AI-integrated identity verification methods such as biometric verification, face recognition, and ID document verification, customers can be verified rapidly.

Identity verification solutions assist businesses with instant, accurate verification during customer-not-present situations. They allow financial institutions and other companies to run consistent identity checks and determine the red flags if any.

Digital ID Verification is Gaining Traction Across Industries

Be it a financial industry, education sector or a Buy Now Pay Later company, identity verification services have become a vital need for every business.

If put into figures, data breach costs rose from USD 3.86 million to USD 4.24 million in 2021. It has been reported as the highest average total cost in the last 17 years. Not just this, losses due to identity theft reached around $721.3 billion in 2021.

These stats evidence why identity verification solutions are more important than ever. Let’s count on greater reasons for why you should opt integrating ID verification solutions into your systems.

“Online identity verification makes to secure transactions.” Fraudsters are highly using stolen identities to commit cybercrimes such as payment card fraud, account takeovers, and more. Identity verification solutions help companies detect any such suspicious activity before onboarding the customers and minimize fraud-related risks. Further, it authenticates users consistently and enhances the overall security. ID document verification and biometric authentication are the most common methods to prevent unauthorized access of scammers.

In addition to maintaining the security of transactions, ID verification solutions enable companies to build online trust. They create value by onboarding legitimate customers in minimal time through automated ID verification services. Seamless onboarding process and satisfactory user experience help drive conversions or account opening rates.

KYC/AML compliance assures clients that their data will remain safe, establishes trust, and prevents you from reputational damage. Further, non-compliance to KYC/AML regulations may cost you hefty fines and financial loss. Integrating simple, effective ID verification solutions help companies to meet regulatory measures and prevents potential penalty.

The reason why digital ID verification services have gained momentum is it reduces the chances of human errors by verifying remote user accurately. Two-factor authentication mitigates the risk of money laundering by verifying government-issued documents as well as performing facial verification.

Industries Requiring Identity Verification Solutions 

From preventing fraud to complying with regulatory obligations, online ID verification resolves fraud-related issues in seconds. Here’s a list of common use cases of the online ID verification process.

Banks and financial institutions top the list of industries requiring digital identity verification solutions. Firm identity verification helps financial institutions to remain compliant and combat identity theft, data breaches & money laundering. KYC solutions enable them to recognize suspicious behavior of clients and make financial transactions safe, secure.

If we shed a light on the retail sector, e-commerce sites are observing steady growth. The rising cases of identity fraud make it crucial for the e-commerce sector to check if the customer is genuine and ensure that transactions are secure. Compliance with KYC/AML solutions further cut-off account takeovers and similar activities. Online ID verification assists companies with a frictionless process, preventing client abandonments.

With the advent of the pandemic, telehealth services have marked a severe growth providing easy checkups at patients’ convenience. However, the service provider has to keep patient information safe and secure. They are also required to verify a patient’s identity to meet HIPAA requirements. Digital identity verification help businesses in a multitude of ways such as compliance checks, onboarding remote patients quickly, reducing medical identity theft, maintaining accurate medical records, and avoiding fraudulent attacks.

Government services such as health assistance, surveys, employment schemes and more require trusted ID verification software providers to help them deliver services securely.

A few other sectors using online ID verification services include cryptocurrency, Fintech, telecommunications, gaming, age-restricted businesses, insurance, and more.

The Bottom Line

Transitioning from traditional verification means offering extensive benefits. Customers are compelling identity verification service providers to keep raising the bar and provide the most effective solutions. Amid the evolving trends in the market, companies should update their identity verification process at regular intervals. They should offer a seamless, secure, and quick ID verification process to safeguard the global payments ecosystem against identity theft and other illicit activities.

Top Identity Verification Methods To Verify Your Customers

In the tech advanced era where counterfeiting or stealing identities is highly common, selecting appropriate identity verification method is of utmost importance. It is to check if a person behind the screen is legitimate.

6 Fraud Prevention Methods

Identity verification process is carried out by several methods following distinct approaches.

  1. Knowledge based authentication
  2. Two-factor authentication
  3. Biometric verification
  4. Online identity verification
  5. Identity database
  6. Credit bureau based solutions


  1. Knowledge based authentication

Have you ever entered your nickname or the name of your favorite dish as a security answer to prove your identity while accessing an online account? Such an identity verification solution is known as knowledge-based authentication. KBA verifies an individual’s identity by asking them to answer previously set security questions. You could also be required to enter answer within a defined time limit, say 1 minute.

The major drawback of using KBA as an identity verification method is its easiness. Anyone close to you, either your friend or relative can make a guess to your security question. Answers could also be discovered through the social networking sites and social engineering. Further, this ID verification solution doesn’t require any government-issued ID documents and lacks authority, reliability.

  1. Two-factor authentication

While making online payments or logging in the digital accounts, website prompting you to enter OTP is a usual affair. It is for putting an extra layer of security to your account to prevent a fraudster from logging in.

Two factor authentication requires a customer to enter a code sent to their registered phone number or email address. It is the simplest ID verification method that doesn’t require any specific tech tools or knowledge.

Multi-factor authentication requires customers to provide a username, password and sort of personal identification or token while they’re accessing the account. Token could be anything such as an OTP or code received from the authentication company.

  1. Biometric verification

With traditional identity verification methods such as KBA and SMS-based authentication on their way out, online identity verification services hold an immense importance. Biometric verification is the process of uniquely identifying person by matching his/her biometric traits. Customer onboarding is the most common use case for this identity verification method.

Online ID verification services backed with AI-integrated biometric technology facilitate with satisfactory user experience, assured answers and quick identity verification. It includes facial recognition, voice recognition, iris/retina scanning and fingerprints.

For instance, while conducting onboarding process, a customer is required to pass through facial verification. He is asked to upload the photo of government-issued ID document followed by a selfie. While taking a selfie, identity verification providers also enable liveness checks to know the person behind the screen is live. The system then analyze the biometric characteristics against the ID document submitted.

  1. Online identity verification

Online identity verification method includes verifying user’s identity by matching their image with identity documents. It checks whether a government-issued ID of a customer really belongs to the user.  Online ID verification employs advanced technologies such as Artificial Intelligence, machine learning, and human review to comply with KYC and AML obligations. This is to ensure the person is who they say they are.

This identity verification method require users to upload a picture of themselves holding their ID document. It is highly secure and facilitates with quick onboarding by extracting data using OCR technology.

  1. Identity database

Database identity verification methods include verifying identity of a customer against the user-provided data. This method analyzes personal identity details such as name, address, date of birth to verify a user’s identity.

The data collected from customers is matched to the trusted data sources. Once the data is verified, identity verification software will revert back with accurate results.

  1. Credit bureau based solutions

Online identity verification services mainly approaches Experian, Equifax and TransUnion as their credit bureaus. These bureaus consist of a vast database of credit data such as name, address, social security number across different countries. Their repositories of consumer credit data is then utilized for performing identity match of customers.

Final Thoughts

Identity verification services are vital to curb illicit activities for all industries including banks & financial institutions, healthcare, gaming, cryptocurrency and more. Prior integrated ID verification solution APIs, companies must look for the verification method that best match their needs. For instance, industries requiring higher security should opt for biometric verification.