The Future Of ID Resolution

Tom Zawacki, President of the Axle Agency and Chief Marketing Officer at Data Axle.

Think of the many unique identifiers that can be observed in a person to pinpoint who they are. A person’s laugh, their gait or the way they sit are all like a fingerprint—no two are alike. Similarly, a person’s digital habits, like typing patterns, touchscreen gestures and mouse movement are equally distinct. In combination with physical characteristics such as facial recognition, retinal scans and eye movements, identity verification is evolving thanks to a combination of physiological and behavioral biometrics.

The Incredible Potential Of Biometrics

Utilizing artificial intelligence (AI) and machine learning (ML), behavioral biometrics analyzes individual habits and physical characteristics to build a personal identification profile that can be leveraged for use cases from fraud detection to hyper-personalization. This is an exciting development with a lot of promise, but as with any emerging technology, we must consider privacy and ethics to eliminate people’s fear of approaching a “Black Mirror” or “Big Brother”-like scenario. However, when thoughtfully deployed with transparency and consent, behavioral biometrics has the power to unlock a new level of tailor-made experiences.

Behavioral biometrics is of particular interest to me as it represents a convergence of my passions and expertise—harnessing data to decode human habits and create more seamless, personalized experiences. Beginning with my academic foundation in anthropology, sociology and psychology from Princeton and continuing through my over 30-year career in technology innovation, I have become an expert in leveraging digital attributes like biometrics to create AI models that drive effective marketing for Fortune 1000 companies in a variety of industries such as automotive, insurance, pharmaceuticals and hospitals. As a member of the Board of Directors at the AI biotechnology company CytoSolve, I am witnessing how cutting-edge technologies like behavioral biometrics are actively shaping our world.

One industry that is leading the charge with this technology is banking, which is often a target of cyberattacks and vulnerable to data breaches. With behavioral biometrics, banks can conduct continuous review of a user. Behaviors and patterns are analyzed in real time to verify who is using the account, if there is risk of fraud and, if necessary, cuing a signal to the bank that additional scrutiny is required.

This is great for the customer, but it is also great for the industry. Detecting fraud early has the potential to eliminate the significant cost of correcting fraudulent transactions. According to the 2023 LexisNexis True Cost of Fraud Study, a fraudulent transaction costs three times the value of the transaction itself. If the majority of fraudulent charges were caught early or avoided entirely, millions of dollars could be saved.

Biometrics In The Automotive Industry

Another sector at the forefront of utilizing behavioral biometrics is the automotive industry. Investment in this space is exploding, with the automotive biometric market projected to reach $3.04 billion by 2030. Much like how many devices can be unlocked with a voice command, fingerprint or facial recognition, some cars are now using this technology to start engines and unlock doors. Others have also begun to incorporate sensors that can monitor a driver’s vital signs, such as heartbeat, respiration rate, facial expressions, speech patterns and perceived stress levels.

Automobile makers utilizing behavioral biometrics need to be forthcoming. Clearly communicating what data is being collected and how it’s being used, as well as allowing consumers to opt out of data collection, is critical for avoiding privacy infringements.

Recently, General Motors (GM) was sued for collecting and selling driver data from over 14 million vehicles to third-party companies. The data was used by the companies to calculate a “driver score” indicating the quality of the driver. According to GM’s agreements with the third-party companies, the scores would then be licensed to insurance providers, informing premiums and, in some cases, leading to dropped coverage. Drivers of these cars were not informed that their behaviors would be tracked, let alone sold to insurance companies, potentially impacting their coverage. Without acquiring advanced consent, this practice is not only unethical but severely impacts consumer confidence in the brand. As other companies begin using this technology, having strong user privacy policies in place is crucial.

Ethical data collection is at the crux of behavioral biometrics. Consumers are becoming more discerning about their data and privacy. A study from KPMG showed that 86% of Americans consider data privacy a growing concern. As such, brands who are forthcoming about what data they collect and how it’s used earn long-term loyalty and inspire consumer confidence. The future of behavioral biometrics is bright when navigated with honesty and a genuine desire to make things better.

How To Prepare For A Biometrics-Led Future

In a future where behavioral biometrics are central to identity verification, there are a few key actions brands can take to ensure success.

Begin with data consolidation, with a focus on accuracy and comprehensiveness. Biometrics attributes should be added to a universal ID as a critical component of the data foundation. Conduct thorough testing to ensure that the technology is performing as desired before launching. Train and test AI models based on economic outcomes such as lowering cost per acquisition or increasing customer lifetime value, and test personalization and message optimization across sales, marketing and retail channels. Socialize the benefits of this technology organization-wide by creating a learning curriculum to understand the ROI impact of biometric data.

Lastly, and arguably most importantly, develop a governance plan to ensure customer privacy and security compliance. Collaborate with industry peers to establish and adhere to transparent standards, signaling a commitment to responsible innovation. Empower users by offering dynamic consent options. Integrate AI-driven tools to anonymize data where possible, balancing personalization with privacy.

Beyond compliance, brands should educate consumers on the tangible benefits of behavioral biometrics, such as improved security and convenience, to foster trust and acceptance. Ultimately, behavioral biometrics is not just about technology but building relationships—done well, it can enhance customer experiences while respecting individual autonomy.

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