UK Government Plans To Update Existing Identity Laws For Digital Identity Checks

In a world where we are increasingly able to purchase age-restricted goods and access services online, having the ability to prove our identity digitally is crucial. In 2019, it was noted that there was a 32% increase in identity fraud over five years. This indicates that while we are now able to access services online, there is a high level of risk involved. Over the past few months, the UK Government has been seriously considering updating their existing identity laws to ensure digital identity checks are easier and more accurate than before. Below, we look at these plans and what it means for the online age verification market.

Why The Move?

During the height of the COVID-19 pandemic in the UK, over 2.6 million people in the UK made claims for the Self-Employment Income Support Scheme online. This scheme was set to benefit many self-employed people in the UK but it was later revealed that over half of these people did not have a digital identity. Unfortunately, digital identity credentials were required to pass through the HMRC verification service.

Digital identity also has the potential to majorly increase the UK GDP and this is another reason why the UK Government are considering updating digital identity laws. Reports suggest that the digital identity market could add 3% to the UK GDP by 2030 and so this is certainly noteworthy.

What Will Change?

The main aim of the updated plans is to allow for digital identity checking to be used as widely as possible. There is an increased demand for people in the UK to prove their identity online and this move is set to be welcomed by those who need to access goods and services online. Throughout the pandemic, more people were buying age-restricted goods online such as alcohol and this trend is set to continue.

The government plans to develop legislation for consumer protection in relation to digital identity. There must be careful consideration made in regard to how identity theft can be prevented as this type of fraud recorded 223,163 cases in 2019 alone. The government will look at 6 principles including proportionality, inclusivity, privacy, transparency, interoperability and good governance.

The first real action we will see comes in the form of the government’s Document Checking Service Pilot scheme. This is set to make accessing certain services online easier for citizens of the UK.

AgeChecked Age Verification Service

The UK government is making solid progress in updating identity laws to increase the use of digital identity checks. There is still a long way to go but with updated laws, we could see the digital identity market grow rapidly over the next 10 years.

AgeChecked is an industry leader in the online age verification industry. Our focus is on age-restricted goods and services and we offer a fully compliant solution adhering to LCCP regulations for RMG and FTP websites. Our hope is that digital identity checks become more widely accepted over the next few years and that our API benefits those seeking to prove the identity of their customers. Get in touch today to find out more.

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