Could QEI have prevented a loss of over €33.000?
At Institute 1. april, we believe that the future does not lie in an ever-growing number of passwords, SMS codes or telephone confirmations, but in a new generation of digital identity.
A recently reported case of online fraud, in which a victim lost more than €33,000, once again raises the question of whether today’s digital identity and online user verification systems provide sufficient protection. Source.
At Institute 1. april, we believe that the future does not lie in an ever-growing number of passwords, SMS codes or telephone confirmations, but in a new generation of digital identity, where users remain the sole true owners of their identity.
QEI development status
QEI is a conceptually designed digital identity system currently in development and in preparation for a research pilot. Its technical, security and operational properties have not yet been validated in a production environment. The proposed pilot is specifically intended to verify the system’s feasibility and the stated hypotheses.
How could the QEI system help?
The proposed QEI (Quantized Encrypted Identity) design is based on multiple independent security factors that would be verified locally on the user’s device.
“The best protection is not a warning after fraud has occurred, but a system that prevents the fraud from happening in the first place.”
— Institute 1. april
If the design were successfully implemented and technically validated, this would mean that:
✔ a stolen password alone would not be sufficient,
✔ a fraudulent telephone call would not grant access,
✔ a stolen SMS code alone would not authorise a transaction,
✔ confirmation would require the verified digital identity of the legitimate user,
✔ biometric data would not leave the device and would not be stored in a centralised database.
The objective of the proposed concept is not merely to issue warnings after damage has occurred. The objective is to explore how such damage could be prevented from occurring in the first place.
Every successful case of online fraud is a warning that existing systems are not sufficiently resilient against modern forms of social engineering and digital identity theft. Similar cases of online fraud are increasing in Slovenia and causing losses amounting to millions of euros. Article; Article.
Through the QEI initiative, Institute 1. april aims to encourage professional discussion about the future of secure digital identity and to explore solutions that could better protect citizens, their data and their assets.
Join the public discussion and help shape a safer digital future.
