U.K.-based Juniper Research estimated worldwide data breaches will rise from about 6,000 this year to more than 16,000 by 2020. However, universal log-in and mobile identity services could ease the pain.
The study claimed that mobile network operators will generate an additional $700 million annually by 2020 from these universal log-in and mobile identity services from a base of just $20 million this year.
The new research, "Mobile Identity, Authentication & Tokenization 2015-2020," found password limitations were increasingly exposed as online engagement soared. With consumers using the same password for multiple sites, the scale of data theft has risen dramatically, with an average of 500,000 records exposed per breach.
Meanwhile, high-profile data breaches such as that experienced by Ashley Madison have dramatically eroded consumer confidence in such sites.
The Juniper study argued that approaches such as that endorsed by the GSMA's Mobile Connect initiative, which seeks to deliver a secure universal solution, would be far more effective. By using this approach, the user logs in via a mobile number and a single PIN. Not only would this diminish the risk of fraud, but also offers potential benefits such as greater customer conversion rates and reduced call center costs.
'It is imperative to reduce online user pain points: enabling a single, secure mode of entry could be a key development in this regard.' research author Dr Windsor Holden said.
However, the research claimed that the business case for mobile ID solutions had yet to be fully established. It pointed out that the problem facing operators opting for a subscription-based approach is that even a low level charge ($1 per month) represented a relatively substantial uplift in consumer spend.
It also stressed that for a mobile ID service to be successful, it would be essential for all network operators within a given market to be signed up to the scheme, thereby ensuring universal availability.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
