All of these things work sometimes in some ways But if our goal is to prevent fraud we may have problems Signatures can be defrauded IDs, pictures, magnetic strips codes on the back of a card can be stolen On average, in the United States last year 2017 there was one credit card fraud approximately every two seconds That's a lot of fraud across society Tens of millions of credit card IDs have been stolen Does that make you not want to use a credit card? Well, you might worry about your security your ability to protect yourself but you also may say "Yeah, but it's really convenient. So, I've got to live in the world." Fraud also happens in currencies We have these documents like paper currency and fraud happens there as well You may do some things to protect yourself but it's not always easy Passwords are sometimes stolen or sometimes inadvertently shared Even fingerprints can be taken without your authorization for example, a young child ordering things from Amazon getting them delivered to her house and her mother says "How did this happen?" It turns out while mom was sleeping young daughter knew the four-digit PIN to get into the Apple phone and while mom is sleeping was able to take a thumbprint and open the phone Then with one-click ordering you can order anything you want on Amazon Just wait till mom falls asleep taking a nap in the afternoon and you can order anything to your heart's content because you saw mom once entering the passcode and you know mom sleep sometimes and I can get the thumbprint Kids can be tricky Now, they're in your same household and you would say "How about risky? Is that a fraud?" But it could be risky and there may be other ways to use biometric fraud They're better than passwords but they're not perfect Documents are often relied upon passports, shipping documents, other information These documents may prove that you own a car or that you own property of other types but fraud can happen with these, too You can have misrepresentation or forgeries and so what else can we do? How can we do this in an online space? Well, in a digital world facial recognition can be better and some ways better than the old village is you may be able to say, "Yes. That is you." The AI verifies your face The information, the intelligence of the device says that's the same person It's better than a thumbprint because in the case of facial recognition you may be able to say with the iPhone X not only do I want to see your face but blink twice with your left eye Now, the next thing says "Show me your face and smile." So, you have to do something more than a passive picture Passwords are still frequently used in a digital world They have some problems They're not perfect, but they may be able to be helpful particularly if combined with something else It's generally good to have a password plus something else a two-factor authentication, but passwords are still frequently used Fingerprints, biometrics have other things often are linked to a smartphone Not all smartphones do facial recognition That's fairly new in high tech But many of them use some kind of biometric verification as well as fingerprint as well as passwords Social media connections, put it in your Facebook account put in your Facebook password maybe a way of verifying who you are and giving more identity But it also has some downside in that you may be giving away a lot more privacy than you realized Secure crypto IDs like private key infrastructure, private key public key can be used to verify an identity in a secure anonymous, or identified context That's a little bit advanced technology I don't really want to delve into that world and take you through the world of TKI because it doesn't matter Let's just say it's a technology that enables you to identify people better than just a password alone It is more secure and in many ways can be combined with other forms of identity to help protect yourself and are often very important when dealing in private anonymous-type transactions There's tradeoffs between security and a high level of security and convenience In many cases, you want the convenience and you're willing to give up some aspects of security, maybe inappropriately so Some people don't realize how much they're giving up in security in order to be convenient or easy to use In coming to an end of this session on identity identity is important for digital transactions for anything in the FinTech space for many different areas of FinTech We care about identity We care about transactions between secure systems between IT systems to make sure that the transactions are secure and identified We want that for many applications and banking and e-commerce and many other areas, payment, systems, etc. Sometimes we also want ways of converting from physical currency to digital currencies and back We want ways of going from a bank account to a cyber currency world or other kinds of digital tokens or payment representations or value in a digital space Sometimes we're also trying to conduct transactions efficiently between people who don't know each other That may be in a trusted IT environment which is a little bit easier where you trust a third party and the bank is in the middle or somebody you trust but the most challenging is sometimes we want to do transactions between people who don't know each other in an environment where they don't trust each other Then what's cool about bitcoin and some of the cryptocurrencies is we can now do trusted transactions between people who have no reason to trust each other over systems that have no trusted intermediary We can use the technology to create the trust for the transaction without knowing the identity of the people or the identity systems involved What we do identify is the assets involved and transacted So, we may not need to have identity of people, we may have identity of wallets and coins that substitute for identity of individuals maintaining a level of security and privacy and anonymity that would be difficult in a physical space So, in summary, identity is important for many types of applications and FinTech We have traditional ways of doing identity and the cyber world or digital world we have to augment those or think more broadly or differently As we think about new ways of creating identity either of assets or of individuals we open up new opportunities for new applications new ways of doing financial transactions new ways of reaching out to individuals either more secure or more efficient or more private or more confidently verified in a quick and easy manner, more convenient Something about them is different and that creates an opportunity Identity is not a product Identity is a technology that enables different kinds of products to be developed So, it matters, but it's a piece of a FinTech application and many different types of applications rely on being able to identify users or assets So identity matters It's the one of the underlying technologies behind FinTech. Thank you
