The Real ID Race: Can Businesses Meet the Compliance Challenge?

In an age where security is paramount and identity fraud is a growing concern, the Real ID Act stands at the forefront of a significant shift in how individuals are verified. Envision a world where every ID tells a story of authenticity, seamlessly linking individuals to their identities in a standardized way.

But as the May 7, 2025 deadline for full enforcement approaches, achieving nationwide compliance will likely be challenging.

According to a proposed rule by the Transportation Security Administration titled “Minimum Standards for Driver’s Licenses and Identification Cards Acceptable by Federal Agencies for Official Purposes; Phased Approach for Card-Based Enforcement,” only 56% of IDs are currently compliant and many states struggling to meet standards. The Real ID Act outlines a framework for enhanced identity verification through a phased enforcement strategy, with significant implications for national security and daily life.

Current Status and Compliance Challenges

As of January 2024, only about 56% of driver’s licenses and IDs are compliant with Real ID standards, with compliance rates varying significantly across states, the proposed rule states. Thirty-four states report less than 60% compliance, while 22 states have rates below 40%. This lack of uniformity presents concerns for the Department of Homeland Security (DHS), particularly with the upcoming deadline for full enforcement.

Per the proposed rule, DHS anticipates that without a notable increase in compliance, millions of noncompliant IDs will remain in circulation, complicating federal agencies’ ability to manage identity verification effectively. Potential risks include increased wait times at TSA checkpoints and operational disruptions, leading to frustrations for travelers and diverted resources from security operations.

Phased Enforcement Approach

To address these challenges, the proposed rule suggests a phased enforcement approach. This strategy allows federal agencies to gradually implement Real ID requirements, giving them the flexibility to adapt to local conditions and readiness levels. Agencies must coordinate their plans with DHS and disclose them publicly, ensuring transparency and accountability in the enforcement process. Full enforcement is expected to be achieved by May 5, 2027, allowing a two-year transition period for compliance.

The Real ID Act, enacted in 2005 in response to the security vulnerabilities exposed by the 9/11 attacks, establishes minimum security standards for state-issued driver’s licenses and identification cards.

Real ID requires individuals to authenticate their identities using birth certificates and Social Security cards. The IDs themselves contain information such as name, date of birth, gender, address, the person’s signature, a unique number and a machine-readable bar code. A primary goal of Real ID is to simplify the process of verifying a person’s identity, adhering to a single, de facto national standard.

Impact of COVID-19 and State Variability

The COVID-19 pandemic significantly impacted state operations, resulting in multiple extensions of the enforcement deadline, according to the proposed rule. DHS has provided more than $263 million to enhance ID security across all 56 licensing jurisdictions, all of which have achieved Real ID certification. But adoption rates for compliant IDs vary across the country, influenced by factors such as the timing of state certification and the presence of noncompliant options. Privacy concerns and implementation costs also play a role in limiting compliance, with some residents unable to obtain compliant IDs.

Understanding the Ease of Identity Theft

In today’s digital landscape, where personal information is often just a click away, the potential for identity theft looms larger than ever. In an interview with PYMNTS CEO Karen Webster, Bryan Lewis, CEO of Intellicheck, stressed the significant damage fraudsters can cause with just a small amount of personal information.

“People don’t realize how easy it is to steal your identity,” Lewis told Webster. “If I can get your social media account or your email, I can change everything about your life. I can change every password you have. I can ruin your reputation.”

The cost of stealing an identity is alarmingly low, with criminals able to buy names, addresses, Social Security numbers and emails for just $30 to $40, Lewis said. Advanced technologies are vulnerable too, as voice prints and facial recognition can be mimicked with artificial intelligence, prompting banks to reconsider their use of voice recognition for customer verification.

Lewis emphasized the importance of effective defenses, noting, “if you can tell that a government-issued ID is real, that’s the most important step.”

Additionally, Lewis highlighted ongoing challenges with digital IDs, noting fragmentation in their creation and issuance across states. To combat identity fraud, Intellicheck verifies the authenticity of government-issued IDs, scanning barcodes and examining hidden security features across North America.

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