Digital Nomad Trend Raises The Incidence Of Identity Fraud

The Identity Verification in a Globalized World report by Regula presents results from surveys conducted among 750 digital nomads and 750 global fraud prevention decision-makers regarding the ways in which businesses are confirming the identities of nomads and the experiences they have when undergoing ID verification procedures when they relocate.

The number of people who identify as digital nomads has increased dramatically in recent years; in the United States alone, there are now 17 million such individuals. 

These are the main conclusions of the report.

Eighty percent of companies reported a rise in identity fraud in the last few months.

Currently, 57 percent of businesses use biometric verification, 53 percent use e-document verification, and 39 percent use blockchain-based identity verification. Digital ID wallets (49 percent) and behavioral biometrics (41 percent) are additional tools. One-third more of the respondents intend to put each option into practice within a year.

Concerns about security and privacy are paramount for both nomads and businesses. Three main hazards were noted by digital nomads in connection with identity verification. They fear that doing identity verification on public Wi-Fi could put them at further risk of cybersecurity breaches, that their IDs could be lost or stolen, and that their identity data is at risk. 

When trying to authenticate identity using foreign documents, digital nomads discovered which situations were the most challenging and convenient. Top scenarios varied by nation within each category. Financial transactions were the most annoying situation in Spain, opening a bank account was the most challenging in the UK, and applying for a visa was the most challenging in the UAE.

In Mexico, Spain, and the UK, booking a hotel was an easy option. Opening a bank account was the most accessible scenario in the United Arab Emirates, while hotel check-in and bank account opening shared first place in the United States.

The US and the UAE are the two countries where foreign passport ID verification is most frustrating. The easiest ID verification procedures for international visitors are found in Germany.

Foreign nationals may find it difficult to renew documents once they expire. For those without a fixed address, proving residency is another difficulty. Additionally, PII could vary from document to document. The credibility of nomads seeking validity is generally harmed by these discrepancies.