In today’s world, characterized by digital interactions and the advancement of Artificial Intelligence (AI), there is a significant crisis of trust. Trust, a cornerstone of any society, is under threat due to various fraudulent activities facilitated by technological progress. From deepfake scams utilizing AI-generated content to reseller frauds impacting online marketplaces, the erosion of trust has significant consequences for individuals and organizations.

Therefore, the concept of digital trust is crucial in navigating this changing landscape. Data protection and cybersecurity now require the verification of digital identities and credentials. This piece delves into the challenges posed by the crisis of trust, the evolving notion of digital trust, and the potential of verifiable technology in rebuilding trust in our digital interactions.

The crisis of trust

Rise of deepfake scams

One of the most alarming aspects of the trust crisis is the global proliferation of deepfake scams. Recently, a criminal group in Hong Kong shocked the world by using AI-generated images to fraudulently obtain bank loans using stolen identity cards. This marked a significant milestone in the criminal application of deepfake technology.

Closer to home in Singapore, fraudsters have taken advantage of AI to create fake legal licenses, while reseller scams continue to rise. Platforms like Carousell have become hotspots for unscrupulous individuals selling counterfeit products, such as tickets to events like a Taylor Swift concert.

On unregulated platforms like Instagram, Facebook, and Carousell, fraudulent sellers impersonate reputable brands, tricking buyers into payments through mobile transactions. These imposters fail to deliver purchased items, damaging trust in brands and online purchasing experiences on these platforms.

Digital data exchange and trust erosion

Reseller fraud not only violates consumer trust but also tarnishes the reputation of legitimate sellers and organizations. The decline in trust on digital platforms and interactions with businesses has far-reaching implications, affecting user willingness to engage in online transactions.

These recent incidents underscore the rapid progress of technology in fraudulent activities and emphasize the necessity of addressing the trust gap in digital transactions. The shift from physical to digital data exchange and social interactions online has created a vast pool of audio, video, and image content for illicit purposes.

Also Read: The state of cybersecurity in 2023: How APAC organisations can stay ahead of the curve

This has led to a lack of trust in the authenticity of digitally exchanged information, with individuals and organizations questioning the credibility of online data.

The evolution of digital trust

In response to the trust crisis, a significant paradigm shift is underway in digital trust. Digital trust now goes beyond data protection and cybersecurity to focus on the validation of digital identities, transactions, and interactions. The key question now is: how can individuals and organizations ensure the authenticity of digital information they receive?

This shift towards identity and data verification is reflected in the increased investment and emphasis by businesses. According to a McKinsey survey, companies prioritizing trust in their products and experiences are more likely to achieve substantial growth compared to those that do not. Globally, organizations spend around US$49 billion daily on enhancing digital trust in their systems and brands.

The balance between accessibility and security

However, traditional methods of establishing digital trust, such as legacy systems and data protection policies, can be cumbersome, costly, and time-consuming. The ongoing challenge in the digital trust realm is finding the right balance between accessibility and security.

Increasing access to personal and organizational data often requires relaxing security measures, creating vulnerabilities for malicious actors to exploit. Striking a balance between accessibility and security poses a persistent challenge.

So, how can companies keep pace with the growing demand for digital trust in this new AI-driven era?

Verifiable technology: Addressing the digital trust deficit

To meet the rising need for digital trust, emerging technologies are taking center stage. Blockchain-powered verifiable technology emerges as a potent solution with a cloud-based approach, offering an additional layer of security seamlessly integrated into an organization’s existing digital infrastructure.

For instance, Accredify’s TrustTech enables organizations to create and issue tamper-proof digital documents and credentials that can be instantly verified through a simple QR code scan. These documents carry four key verification points: integrity, issuer recognition, issuance status, and validity.

By encrypting all data within issued documents to the blockchain through hashing, Accredify ensures that recipients have full ownership of the information, promoting trusted data distribution. Industry-agnostic applications of verifiable technology are already in use by government agencies in Singapore, a leader in adopting emerging technologies for digital transformation.

Verifiable technology offers solutions for various sectors. For instance, in finance, it streamlines verification processes and enhances transparency, benefiting businesses, regulators, and consumers alike. As organizations and individuals shift towards a verifiable data ecosystem, trust becomes inherent in digital interactions, fostering a secure and transparent digital landscape.

A trustless future enabled by verifiable technology

The world must embrace the next phase of digital innovation, transitioning from physical to digital documents and data verification. Verifiable technology represents the future of digital transformation, ushering in a new era of trustworthy information exchange.

This technology acts as an enabler, requiring collaboration among stakeholders like banks, digital platforms, and individuals to leverage it effectively. In a world grappling with trust issues, verifiable technology offers a path to a trustless future where shared data is inherently true and authentic.

Verifiable technology has the potential to reshape digital interactions positively, leveraging AI while safeguarding against misuse. By harnessing these technologies for good, we can create a future where trust is a fundamental aspect of our digital landscape.

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Image credit: 123rf-peshkova

This article was originally published on October 3, 2023.

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