Identity Fraud - A Major Concern

by CXOtoday Staff    Sep 01, 2006

With identity fraud on the rise, the new government policies and regulations resulting in fines for disclosure of private information of customers or inappropriate account access, will be imperative for people to monitor and block sensitive information.

According to a Frost & Sullivan study, the ever-increasing identity fraud due to Internet-based attacks will make identity assurance vital in the future. The study emphasized that many a times information leakage is not malicious, but accidental by some employees not aware of corporate policies.

IT governance can be a module that ensures systems embedded in IT infrastructure are capable of meeting business objectives with appropriate process, people and guidelines. To strengthen corporate accountability, the regulatory compliances like HIPAA, Sarbanes Oxley etc. will be imposed, said the study.

The study added that with a need for security, due to extended corporate networks and therefore increased usage of web services, government regulations such as Sarbanes Oxley and HIPPA has increased adoption of identity management in enterprises.

Alok Shende, Director, ICT Practice, Frost & Sullivan elaborated, “Many vendors are adapting their marketing messages announcing a new positioning as identity management providers. Frost & Sullivan define identity management as the process of managing authentication, access rights, privileges and administration of digital users. Identity management is one of the fastest growing areas in the security market. However, this concept has no clear definition. ”

Frost & Sullivan added that apart from aiding regulatory compliance and security issues, identity management would enhance operational efficiency of enterprises, reduce costs and also enable risk management. A high level service centric identity management solution will have features including automated audits, attestations, consistent access and provisioning, an ability to manage change automatically and full delegation.

As organizations open their networks for increasing numbers of employees, customers and partners, companies will face the challenge of providing accounts to multiple users with an appropriate level of access to applications and resources. Large enterprises then begin to demand comprehensive identity and access management solutions which can provide self-service to end users in a secure environment while addressing all aspects of user administration, authentication and access control, claimed the study.

“India is witnessing an explosive growth in IT adoption in the last few years and the numbers of users that depend on IT to perform their work has grown by orders of magnitude,” added Shende.

Frost & Sullivan added that the effort involved in the management of digital identities of users has grown significantly and this will put huge pressure on over-stretched IT departments. Coupled with this, the growing incidents of identity fraud and associated damage to corporate reputations, it is time that this area of IT management is given serious attention.