How Blockchain Thwarts Identity Theft

By CIOReview | Wednesday, May 22, 2019

FREMONT, CA: Blockchain provides an excellent opportunity for the government and people to prevent identity theft through its reliable validation technique, cryptography. Identification theft is seen escalating at a pace, never witnessed before. The data breach has been increasing in organizations. Identity theft occurs every two seconds and is the number one consumer's complaint. Many people are not aware of what identity theft is. These people may not be even aware that they have become a victim of identity theft until they face negative consequences. Knowing that identity theft is more important and taking a precautionary measure beforehand is given utmost importance, the need for protecting data from getting exploited has become quintessential. Preventing identity theft is mandatory, but it is not as easy as said. Knowing attack points that are vulnerable to identity theft is the key to finding a reliable solution for getting rid of this issue.  

Blockchain is acknowledged as a security solution when it comes to cybersecurity risks. It holds tremendous power and potential to secure sensitive data from malicious actions due to its sophisticated features. Blockchain can fix cybersecurity risks, and it can also help in subduing identity theft. Since blockchain contains a decentralized ledger holding digital assets that are secured, via active cryptographic keys, it becomes challenging and stressful for hackers to manipulate the stored data. On a blockchain network, multiple data are stored, in various computers. Attackers are trying to get hold of the critical data assets to have to invade into every system to reign the network. In case if hackers happen to obtain access to the network, the changes they make to the data will be reflected in the systems, notifying every participant about the same. Creating a self-sovereign identity on the blockchain will allow individuals to take care of their identity documents.

In order to prevent identity theft, understanding the places where thieves can get personal information about people is vital. Driver's license identity theft, E-commerce fraud, mail identity theft, social security number, false identity, medical identity and internet of things theft are the types of identity theft expected from attackers. Storing identity on blockchain network will help the government and public to prevent identity theft. It will also boost the technology to obtain mass confidence and reach mainstream adoption. Blockchain is still in its developmental stage and technology has enormous potentialities to secure data stored on it.