Virtual Hearing - I Am Who I Say I Am: Verifying Identity while Preserving... (EventID=113929)

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Connect with the House Financial Services Committee Get the latest news: https://financialservices.house.gov/ Follow us on Facebook: https://www.facebook.com/HouseFinancialCmte Follow us on Twitter: https://twitter.com/FSCDems ___________________________________ On Wednesday, July 15, 2021, at 12:00 p.m. (ET) Task Force on Artificial Intelligence Chairman Foster and Ranking Member Gonzalez will host a virtual hearing entitled, “I Am Who I Say I Am: Verifying Identity while Preserving Privacy in the Digital Age." - - - - - - - - Witnesses for this one-panel hearing will be: • Jeremy Grant, Coordinator, Better Identity Coalition • David Kelts, Director of Product Development, GET Group North America • Dr. Louise Maynard-Atem, Research Lead, Women in Identity • Professor Elizabeth Renieris, Founding Director, Notre-Dame-IBM Technology Ethics Lab, University of Notre Dame • Mr. Victor Fredung, Chief Executive Officer, Shufti Pro Overview As our society and economy move increasingly online – from banking services to online investing to digital housing products and services – digital verification of an individual’s identity is becoming more important to securely facilitate access to essential products and services. Digital payment apps have grown in use domestically and globally, with technological advances allowing smartphone users to make financial transactions that settle faster with just a few steps. The widespread adoption of online banking and other digital products has accelerated due to the COVID-19 pandemic. Simultaneously, the sharp increase in identity theft in the past few years, with the FTC receiving over 1.3 million reports in 2020, up from around 650,000 in 2019, has renewed calls for improvements to digital authentication. Artificial Intelligence (AI) and other emerging technologies can improve modern smartphones' processing and sensor capabilities and enable the creation of a high quality and privacy-preserving secure digital identity (ID). Smartphone technology companies have begun supporting advanced digital ID products, but with federal and state governments and the private sector each moving at their own pace, interoperability requirements and standards are an issue for hearing review. This hearing will also discuss the future of digital identity frameworks, examining how the emerging technologies (including AI, blockchain, and other distributed ledger technology) could contribute to building digital ID. Use of Artificial Intelligence in Financial Services AI can be thought of as computerized systems that work and react in ways commonly thought to require intelligence, while machine learning (ML) algorithms, a type of AI, automatically improve their performance through experience with little or no human input. The financial sector has increased the use of these complex techniques to: (1) facilitate financial crime compliance, including the processes required for customer identification and onboarding, due diligence, transaction monitoring, and investigations into fraud and other financial crime, allowing for rapid identification of patterns and anomalies; (2) personalize consumer services; (3) make credit decisions; (4) inform risk management forecasting and auditing; and (5) identify potential cybersecurity and insider threats. AI is currently utilized by some financial institutions when collecting, analyzing, and monitoring attributes used to establish and verify digital identities. As a regulated industry, the financial services sector is required to comply with Customer Identification Program and Know Your Customer mandates to verify a customer's true identity. Some financial institutions utilize AI to confirm a customer's identity, by collecting and analyzing traditional, publicly-available data (e.g., a consumer's name or address) together with non-traditional data (e.g., a device's IP address) and biophysical biometric data (e.g., face or fingerprint matching). A newer type of attribute from which AI can infer identity includes behavioral biometrics such as “an individual’s email or text message patterns, mobile phone usage, geolocation patterns, and file access log.”9 Both the collection and use of all types of consumer data comes with varying reliability and privacy risks. Collaborative models seek to use AI and ML to enable financial institutions to learn from the data of similar financial institutions and jurisdictions, creating a larger pool of data in which to find patterns and anomalies without moving the data. AI is also used to more accurately evaluate risk related to customers, thereby enabling financial institutions to onboard a broader range of customers, including the unbanked and underbanked. Identity Proofing Identity proofing, which is the process of establishing that a subject is who they claim to be, is the first step of establishing a digital identity..... Hearing page: https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=407959