Digital identity verification is now a standard part of onboarding, access control, and fraud prevention across many industries. However, as adoption increases, so do questions about how personal information is gathered, stored, and used. The convenience and efficiency of these tools mean little if they expose users to privacy risks. The challenge for organisations is finding identity and access management (IAM) solutions that authenticate users reliably and safeguard sensitive information at every process.
Discover how to balance accessibility and privacy when using IAM software.
Understand the Data You’re Collecting and Why
One of the first steps to ensuring privacy is limiting data collection to only what is necessary for identity verification. Many companies fall into the trap of collecting excessive data, either out of habit or lack of policy clarity. This approach increases the risk of breaches and violates privacy-by-design principles. IAM solutions must be configured to follow data minimisation practices, capturing only the essential personal information required for verification. Additionally, organisations should document their purpose for collecting each data point, ensuring they have a lawful basis for processing under frameworks like the PDPA or GDPR, depending on the jurisdiction.
Choose IAM Solutions with Strong Encryption Protocols
Robust encryption should be a non-negotiable feature of any digital identity verification tool. Data must be encrypted at rest and in transit to prevent unauthorised interception or access. IAM solutions should use proven encryption standards such as AES-256 and TLS 1.2 or higher. Furthermore, key management practices must be audited regularly to ensure that cryptographic keys are not exposed or reused inappropriately. Beyond encryption, organisations should explore tokenisation or anonymisation techniques where possible to reduce the sensitivity of stored data.
Implement Granular Access Controls and Audit Trails
A core feature of effective identity and access management is the ability to control who can view, process, or modify identity data. IAM solutions must support role-based or attribute-based access controls that ensure only authorised personnel interact with verification data. This approach reduces the attack surface and limits internal misuse. In parallel, comprehensive logging and audit trails should be maintained to track access and usage patterns. It not only enables accountability but also helps in forensic investigations in the event of a breach or suspicious activity.
ALSO READ: The Complexity of Managing Digital Identities and Access Rights, and How to Cope
Prioritise Vendor and Third-Party Risk Management
Many organisations outsource parts of the digital identity verification process to third-party vendors. While this can enhance efficiency, it introduces new privacy risks. Businesses must perform due diligence on vendors’ data handling practices and ensure contractual safeguards are in place, such as Data Protection Agreements (DPAs). The chosen IAM solutions should provide visibility into how third-party services interact with personal data, and organisations should retain the right to audit their compliance. Avoiding vendor lock-in and insisting on data portability also supports long-term control over user information.
Offer Users Transparency and Control
Users have the right to know how their data is being used, especially regarding digital identity verification. Organisations must provide clear privacy notices at the point of data collection and offer users the ability to manage consent, view stored data, or request deletion. The IAM solution you adopt should support privacy features such as self-service portals or automated data deletion workflows. Transparency builds trust and ensures compliance with international data protection standards.
Review and Update Policies Regularly
Digital identity verification technologies evolve rapidly, and so do the risks. Organisations should regularly review their IAM policies and digital identity processes to keep pace with new threats and regulatory expectations. This review includes revisiting privacy impact assessments, updating internal access protocols, and conducting third-party audits. Staying current ensures that your IAM solutions continue to protect privacy while delivering secure and efficient identity verification.
Conclusion
Digital identity verification is an effective tool, but without appropriate privacy safeguards, it can become a problem. Implementing privacy-conscious identity and access management policies is more than just a statutory necessity; it’s a strategic decision that builds trust and lowers organisational risk. Businesses must adopt IAM solutions that combine precision, control, and privacy protection from the outset.
Visit Adnovum for a secure and compliant digital identity verification platform.
