How Blockchain Is Being Used to Fight Identity Theft

It’s common knowledge that our private information is almost never secure when we are online. Centralized systems that store our information are extremely vulnerable to fraud, making us all extremely weary when trading our information online. Despite the caution, nearly all of our online interactions require some form of personal information. Whether it be bank details, insurance numbers, addresses or healthcare history companies, governments and institutions alike all require personal information to verify our identity. Every time you give any kind of personal information, the data is stored on a database somewhere, making it nearly impossible to protect. This makes it accessible to cybercriminals who use the dark web to steal personal details. Blockchain technology may pose as the solution to gaining back control of our personal identities.

Blockchain’s decentralized ledger system is incorruptible making information stored on it completely secure. Blockchain is changing the way we think about data and who ultimately holds the power over it. To truly control who has access to our personal information on the Blockchain, you first need to employ cryptographic keys that works as a password-like function giving you infallible control over your personal information stored on the Blockchain.

When the decentralized Blockchain system and the use of public-key cryptography (PKI) work together, the possibility of security breaches are greatly diminished. General Motors Financial has this month partnered with a Blockchain company to help in the fight against synthetic fraud. Synthetic Fraud refers to an almost untraceable form of identity theft where perpetrators combine different forms of stolen data to create a new identity. GM Financial reported that they are currently losing millions of dollars in costs relating to identity theft every year.

This significant step in Blockchain adoption is a promising sign of future trends in data sharing and protection. It challenges the notion of data ownership in a landscape where people’s data is shared over hundreds if not thousands of online databases, none of which has a guaranteed way to prevent fraud.  Currently large scale corporations allocate large amounts of resources to safeguarding data.  The widespread implementation of Blockchain technology will transform data sharing and eradicate the need for protection systems.

Individuals are becoming increasingly dissatisfied with the current state of digital data and Blockchain solutions are becoming more than ever a feasible alternative. For data-sensitive companies like GM Financial, Blockchain’s appeal is growing and is set to become the standard in data protection and control.

To learn more on how to harness the latest in Blockchain technology, contact one of our experts at Blockchain Australia. Our industry professionals tailor scalable Blockchain solutions to suit your individual needs. Be part of the revolution!

Leave a Reply