{"id":375077,"date":"2025-01-04T11:03:07","date_gmt":"2025-01-04T11:03:07","guid":{"rendered":"https:\/\/www.techopedia.com\/?p=375077"},"modified":"2025-01-04T11:03:07","modified_gmt":"2025-01-04T11:03:07","slug":"digital-id-fragmentation","status":"publish","type":"post","link":"https:\/\/www.techopedia.com\/digital-id-fragmentation","title":{"rendered":"The Digital ID Headache Caused by Fragmentation & AI"},"content":{"rendered":"

Various countries are attempting to introduce digital ID<\/a>s for use as identification for various services and, ultimately, central bank digital currencies<\/a> (CBDC) wallets.<\/p>\n

Yet across the world, roll-out has largely been delayed as governments work to iron out kinks in the systems and seek to overcome public opposition.<\/p>\n

In December 2024, the UK government published plans to pass a new law in 2025 that will allow pubs, bars, and shops to accept a digital ID<\/a> from an approved list of issuers as proof of a customer\u2019s age.<\/p>\n

But this voluntary option is a long way from a full national digital ID system.<\/p>\n

Countries like Australia are piloting schemes and plan to roll out fully functional digital IDs by 2030.<\/p>\n

It is more tricky in the U.S., which lacks a federal system to even begin the process, as IDs are managed by individual states.<\/p>\n

For instance, mobile driver’s licenses are only accepted in 13 U.S. states, and major infrastructure upgrades are required to make them viable replacements for traditional IDs.<\/p>\n

Against technical delays, regulatory challenges, and public opposition, we are also seeing generative AI<\/a> tools and randomization tools that make it easier than ever for cybercriminals<\/a> to engage in identity theft and create fake identities that are increasingly difficult to detect.<\/p>\n

Techopedia explores the rise in digital identity fraud and advice for businesses that rely on ID as part of their duties.<\/p>\n

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Key Takeaways<\/span><\/h2>\n