What Is Digital Identity? | Persona

What is digital identity?

Digital identity is a group of data points — information, attributes, credentials, behaviors, and more — that together represent an individual, business, device, or other entity in a digital space.

A digital identity is like a file that contains everything you know about a person’s digital footprint. If a person needs to prove digitally that they are who they say they are, they can present you with a piece of information or evidence (or usually multiple pieces of evidence), which you can then compare against what’s contained in the file.

As more and more products and services move online, digital identities are a crucial part of interacting with the web, for example, when:

Digital identity vs. digital ID

While the terms digital identity and digital IDs sound similar and are sometimes used interchangeably, they’re actually different concepts.

A digital identity is a set of identifying data points that can be used to represent or verify a person’s identity online. A digital ID, on the other hand, is an electronic identification document (ID) meant to replace a physical ID. A mobile driver’s license (mDL), digital driver’s license (dDL), electronic IDs (eIDs), and e-passports can all be considered examples of digital IDs.

Importantly, digital IDs can be used to establish and verify a person’s digital identity.

Digital identity vs. user

While users and digital identities are related, they are not the same.

A user is somebody that opens an account in order to access and interact with a specific platform or system — for example, a social media platform or an online marketplace. Another way to think about it is that a user is somebody who opens an account and establishes a digital identity, while a digital identity contains all of the data you know about a specific person.

Digital identity vs. account

Likewise, it can be easy to conflate a digital identity with an account — but again, they are not the same.

An account is essentially a portal through which a user is allowed to interact with a platform or system. They are typically secured via login credentials: a username, password, and potentially security questions or multi-factor authentication settings which are used to gain access to the account. An account can be tied to a digital identity, but it does not make up the entirety of that identity.

Why is digital identity important?

Ultimately, the importance of digital identities is that they allow a business or organization to know who somebody is and whether or not they should have access to a particular platform, service, or account. They’re essential not just for authentication purposes, but for a variety of other purposes as well:

What’s included in a digital identification?

The data points, attributes, and other characteristics that are included in a digital identity will vary depending on use case as well as the type of identity that is being established.

For individuals, a digital identity will often include things like:

Depending on the setting, it can also include things like an individual’s browsing history, transaction data, and more.

For businesses and other entities, it may include:

Other identifying information, such as customer account numbers and vendor codes — as well as fingerprints, selfies, and login credentials tied to an organization’s executives — can also form part of an entity’s digital identity.

Finally, for devices, it can include attributes like:

Types of digital identity

We can segment digital identities in a number of different ways. For example, based on how they are established. Under this framework, we have the following types of digital identity:

Frequently asked questions

What is digital identity verification?

Digital identity verification is the process of confirming a person is who they say they are, using digitally-available information in a remote setting. This can include information provided directly from the individual, such as answers to questions, government-issued IDs, selfies, and information from online sources like a social media profile.

Keep learning: Why you need a digital verification system for your business

What is digital identity management?

Digital identity management (DIM) is the set of processes a business uses to ensure proper access of its systems. It includes initial verification of a person’s digital identity as well as subsequent maintenance of their information (i.e., keeping up-to-date records). As a concept, it is closely related to the idea of identity and access management (IAM).

What is digital identity theft?

Digital identity theft, or online identity theft, is when a fraudster steals a person’s identity using information that is available online. A fraudster may, for example, take information and photos from a person’s social media profiles in order to impersonate them. It can also include instances where a bad actor actually takes control over a person’s online account and uses it to make unauthorized purchases or engage in some other form of fraud.

Keep learning: Red Flags Rule: Your business’s role in preventing identity theft

What is digital identity protection?

Digital identity protection refers to the steps and measures that you put in place to secure a digital identity from inappropriate access or use. It can include a variety of measures. As a business or platform owner, you can increase the protection of your users’ digital identities with measures like: