People have been sharing assets for a long time. But with the advent of technology, it has been easier for people to exchange resources on demand. This concept is called the sharing economy or collaborative consumption, a highly flexible economic model in which assets and services are acquired, provided, or shared between private individuals.
The sharing economy often involves a community-based platform that connects sellers and buyers. In recent years, shared businesses have significantly grown, with many analysts expecting this market to continue booming. In truth, its global sharing economy value is predicted to reach $335 billion by 2025, from $15 billion in 2014.
Many people are shifting from the traditional system that allows for sharing resources, services, information, and even ideas to robust identification solutions like leveraging the benefits of multi-factor authentication. Thus, enabling greater collaboration.
Inadequate authentication measures might leave the collaborative economy networks vulnerable to data breaches. Accordingly,more and more users are interested in various sharing economy sites.This trend increased the threat of criminals exploiting services and who aim to compromise confidential business data.
Should bad actors steal confidential information, they can use it to pretend to be someone else and sell the information on the dark web. Employing effective and efficient identity identification is critical to preventing criminals from gaining access to valuable data on sharing economy sites.
Furthermore, while some sharing economy sites have implemented identity verification measures and background checks for their users, there is still a lack of uniformity across providers’ procedures.
Inconsistencies in the security measures often result in consequences leading to compromised safety, financial losses, and customer distrust. When it comes to security, P2P companies must ensure that contractors and customers feel safe when conducting online transactions. T
They must consider employing modern and efficient security solutions to ensure users are who they claim to be to prevent illegal activities via the platform.
Read this infographic from AuthID to learn more about the sharing economy and the need for identification.