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5 Reasons Why You Need to Strengthen Your Identity Authentication

A weak line of defense and poor authentication mechanism at the service providers’ could tarnish a brand's reputation in the global markets and eventually entitle the organization to pay hefty fines. Read on to know more about identity authentication and how it paves the path for businesses embarking on a digital transformation journey.


Identity authentication is crucial for online businesses in the era when almost 60% of the world’s population is online.

However, the stats mentioned above don’t mean that everyone browsing the internet is safe and cannot be on the radar of cybercriminals since we witness massive data breaches compromising millions of identities every day.

As per global stats, the total number of identity thefts has increased substantially amid the worldwide pandemic and is expected to inflate further.

A weak line of defense and poor authentication mechanism at the service providers’ could tarnish a brand's reputation in the global markets and eventually entitle the organization to pay hefty fines.

So what does it imply? We need a stringent mechanism to secure identity authentication (as conventional systems cannot handle massive user signups and logins).

Yes, secure authentication is the need of the hour for every business striving to excel in growth and ensure adequate security.

Let’s look at some aspects that portray why businesses need to quickly put their best foot forward in strengthening their identity authentication.

5 Reasons Why Your Business Needs Identity Authentication

1. Securing consumer identity is crucial now more than ever before

Businesses have compromised consumer identities in the past couple of years, leading to financial losses and tarnished reputations. Even the most robust security system can’t ensure identity security without stringent authentication and authorization mechanisms in place.

Apart from this, the sudden paradigm shift towards online platforms has also increased the number of signups and registrations on diverse platforms leading to an increased risk of data breaches since most users aren’t aware of online security best practices.

Hence there’s an immediate need to deploy a reliable consumer identity and access management solution (CIAM) to reinforce identity authentication security without hampering user experience.

2. Privacy regulations like GDPR and CCPA are becoming more stringent.

Due to increased worldwide regulations, including the EU’s GDPR and the United States’ CCPA, protecting consumer data is crucial for every business targeting citizens of a specific region.

Since it protects consumers’ privacy and eventually improves brand value, and offers a competitive advantage, businesses must partner with a reputed CIAM service provider to ensure they’re compliant with government privacy regulations.

Businesses that don’t implement the privacy regulations could be fined up to millions of dollars and face penalties for years.


According to Forrester's study, 42% of external attacks happen due to software exploitation, and 35% result from web application vulnerability. As applications become more complex, different laws have been enacted to ensure their security.

As a creator of front-end or back-end applications, developers will eventually experience the need to collect and store consumer information like their identities and other profile details.

At the same time, they'll also need to design a new user registration workflow, enable omnichannel experience, configure authentication methods like social login, provision or de-provision consumers, partner to a third-party application, or secure the API of their web services.

Hence, developers need to incorporate robust identity authentication mechanisms to ensure the highest level of application security.

4. Consumers demand rich user experience from the moment they interact with your platform

Admit it, a little friction in the overall registration process could lead to your website visitors being forced to switch to your competitors.

Hence, no business could afford to lose a potential client just because its platform lacks a rich consumer experience that begins from the moment a user first interacts with their brand.

Businesses must leverage cutting-edge identity authentication methods like passwordless authentication that swap the use of a traditional password with more secure factors.

These extra-security methods may include a magic link, fingerprint, PIN, or a secret token delivered via email or text message.

5. Businesses can create a personalized consumer journey and build trust

Every consumer that lands on a website or downloads a mobile app has to go through a sign-up process, which decides whether a company is getting a loyal consumer or just another random user.

Hence, businesses must leverage user data's true potential to deliver the experience that users demand.

Whether it’s personalized suggestions based on previous search history or recommendations of products based on their interests, brands can build credibility and further enhance user engagement for more conversions.

Hence, businesses need to ensure their sso business strategy is up to the mark since consumers already interact with brands like Google, Amazon, Apple, etc. They know what a great user experience is.

In Conclusion

Today’s businesses are already hurrying to jump on the technology bandwagon for their digital transformation. However, they aren’t paying attention to identity management's most crucial aspect.

Through a robust CIAM solution, identity management has endless business advantages, including robust security, seamless user experience, compliance management, and more.

Therefore, enterprises shouldn’t delay their identity management decisions and put their best efforts into incorporating a reliable CIAM to strengthen their identity authentication.


Rakesh Soni

Written by Rakesh Soni

Entrepreneur by Work. Artist by ❤️. Engineer by Trade. Human Being. Feminist. Proud Indian. CEO/Co-founder at LoginRadius, securing 1B+ IDs worldwide.

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