What to expect in 2025: Trends in digital identity, privacy, and AI

2025 has just begun and we can already say that we will witness major changes in digital security, new legislation or privacy. At TrustCloud, we’re committed to staying ahead of the latest trends so your business doesn’t have to worry about compliance, adapting to rapid innovation or ensuring that technology respects users’ rights.

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rends shaping the future of technology are transforming the way we interact with digital platforms, protect our personal information and authenticate ourselves online. From new forms of biometrics to the expansion of digital wallets, adaptability to these innovations will be key to meeting the challenges of the future.

As a pioneer in digital transaction choreography, TrustCloud offers a unique approach to seamlessly manage all digital interactions. Our choreographer ensures that each step is precisely coordinated, integrating the most advanced authentication, identification or signature systems, with constant updates.

Privacy and data regulation: A global priority 

• The adoption of technologies to protect privacy will continue to gain momentum

Both businesses and governments are increasingly adopting solutions that reduce the exposure of sensitive data, aligning with the growing demand from users for greater control over their information. This focus on privacy has driven the adoption of decentralized identity systems—blockchain-based solutions and cryptographic techniques that enable users to manage and share their data securely without relying on central authorities. 

• The rise of consumer rights will drive ethical practices 

Closely linked to the advancement of technologies designed to protect privacy, as mentioned earlier, is a strong movement driven by consumer rights. Increasingly, citizens are demanding greater transparency and control over the collection and use of their personal data. This pressure has led organisations to adopt ethical practices in data management, such as privacy by design and the use of verifiable AI tools. Verifiable AI enables companies to demonstrate that their algorithms are not only accurate but also impartial, auditable, and respectful of privacy, ensuring that data is not misused. 

• Privacy laws will expand globally 

Privacy laws are emerging globally, strengthening the protection of personal data and unifying standards. In the United States, the California Consumer Privacy Act (CCPA) gives citizens greater control over their data, inspiring similar legislation in other states. In Latin America, Brazil’s General Data Protection Law (LGPD) establishes clear principles for the use and security of personal information, similar to the European GDPR. Asia is also advancing with strict regulations such as South Korea’s Personal Information Protection Act (PIPA), which imposes stringent requirements on sensitive data management. 

These laws pose a challenge for businesses, which must comply with diverse regulations. However, aligning with these regulations builds consumer trust and encourages the adoption of ethical practices. The coming months will be a testing ground to see how these new frameworks fit into practice. 

Cybersecurity and fraud: challenges in an AI-driven world 

• AI will be a powerful ally for cybercriminals 

Attackers are using artificial intelligence tools to create more effective and harder-to-detect attacks. Phishing emails with flawless grammar and specific personal details are just one example of how AI is being used to deceive users. One key statistic: between the launch of ChatGPT in November 2022 and May 2024, there was a 4,151% increase in malicious phishing messages driven by generative AI. Furthermore, mass campaigns can execute thousands of personalised attacks simultaneously, overwhelming traditional defences. This new era of cyber threats, supported by criminal organisations that recruit vulnerable individuals and equip them with the necessary tools to reach thousands of victims at once, demands more innovative and proactive solutions. 

• Deepfakes: the challenge of distinguishing reality from fiction will become even greater 

Deepfake technology adds an additional layer of complexity to the issue. These tools allow the creation of synthetic identities (either entirely artificial or by combining real and fictional information) so realistic that they can infiltrate organisations and systems, posing as legitimate employees. These fake identities can access sensitive data, alter internal processes, and cause significant financial damage. By 2025, there will be an attempted deepfake fraud every 5 minutes (Entrust). Companies are beginning to implement advanced identity verification systems to counteract these threats, which flood digital environments and compromise onboarding processes. 

• Post-quantum cryptography will ensure security, anticipating the future 

Quantum computing, with its ability to solve complex mathematical problems in seconds, poses a potential threat to current encryption methods. In response to this risk, researchers are developing post-quantum cryptography algorithms designed to withstand even the most advanced attacks. Technologies such as lattice-based cryptography or codes offer a promising solution to protect information in a future where quantum computers will be a reality. 

This type of defense will be essential in the case of digital asset custody, a factor that has already been considered by Quantum Vault, TrustCloud’s qualified custody module. 

The evolution of digital identity and verification 

• Identity will be the core of digital security in zero-trust architectures (ZTA) 

2025 will mark a turning point as digital identity becomes the cornerstone of digital security, particularly within zero-trust frameworks (ZTA). In these systems, no person or device is automatically trusted, even if they are within the corporate network. Access to resources will be based on continuous authentication, supported by ongoing analysis of user behaviour, enabling the detection of anomalous patterns and potential intrusions. With the rise of cyberattacks and fraud, identity will not only serve as the primary access filter but also as the key indicator for preventing unauthorized access, enhancing security controls, and protecting banks and businesses. 

• Identity verification frameworks will evolve to offer greater reliability 

As concerns over data protection rise, identity verification frameworks will be updated to offer enhanced reliability and adaptability across different sectors. In the financial sector, for instance, new regulations have prompted organizations to seek more robust authentication methods. Technical standards, such as the use of verifiable credentials based on blockchain and the integration of artificial intelligence technologies for behaviour analysis, will ensure that verification processes are faster, more secure, and less vulnerable to fraud. This evolution will also enable the adoption of global standards, helping to unify procedures and guarantee trust in digital transactions. 

• Mobile licenses and digital credentials will transform the way we identify ourselves 

The digitalisation of driving licences and other forms of identification is rapidly gaining momentum in many regions around the world. By 2025, mobile driving licenses (mDLs) and digital credentials are expected to become the norm. Digital identity wallets will be a part of our daily lives, with more than 500 million smartphone users expected to use them regularly by 2026 (Gartner). The European Digital Identity Regulation (EUDI) will enable EU citizens to use their digital IDs across various countries, enhancing interoperability and reducing barriers in transnational transactions. Users will be able to verify their identity easily and securely via their mobile devices, facilitating access to government, financial, and commercial services without the need to carry physical documents. It will also be a matter of time before these systems enable stricter and more transparent control over access to personal data, reducing the risks of fraud and identity theft. 

TrustCloud’s Digital Identity Wallet, based on Self-Sovereign Identity, adapts to international standards and regulations, such as the EUDI, ensuring interoperability between different regions as this new framework aims. The TrustCloud Wallet is a secure space that allows users to have full control over their credentials, safeguarding their rights to assign or revoke data. 

• Biometrics will become the cornerstone of remote verification, with new forms of authentication 

Biometrics will continue to evolve, becoming the key to remote identity verification, not only through traditional methods like facial recognition and fingerprint scanning, but also with the rise of more advanced forms of authentication. Technologies such as retina recognition, voice verification, and biometric signatures are expected to take centre stage in the coming years. Additionally, keystroke-based authentication, which analyses typing patterns, and gait recognition, which identifies individuals by their walking style, could become common solutions. Biometric solutions will be reinforced with additional layers of security, such as liveness detection (to ensure the user is present during verification) and more sophisticated algorithms to differentiate between a real user and an AI-generated simulation. These advancements will ensure that biometrics remain a fundamental tool in the fight against fraud and identity theft.

Ready to stay ahead of the digital transformation? At TrustCloud, we ensure that your business is prepared for the challenges and opportunities 2025 has in store.

Contact us today to learn how we can help you navigate the future of digital identity, compliance, and cybersecurity